San Diego, CA (PRWEB) April 22, 2014
Finding a good mortgage interest rate can mean the difference between saving or spending several thousands of dollars for mortgage borrowers. This is why keeping an eye on whether rates are going up or down is so important. If rates are expected to go up, it is usually best to lock in current rates, but if rates are expected to go down, then holding out for these lower rates could be the better option. So which way are mortgage rates going to go? A newly featured guide from LoanLove.com takes a look at current mortgage rates trends and predictions for this year, as well as looking at mortgage interest rate expectations for 2015.
This Loan Love guide, titled “Mortgage Interest Rates Forecast For 2014”, says, “Things are looking up, at least as far as mortgage rates are concerned as we head into 2014 and even beyond into 2015. Just how far up? The Mortgage Bankers Association experts are predicting in their mortgage interest rates forecast for 2014 that interest rates for a 30-year fixed-rate mortgage are likely to creep pass the 5 percent mark next year and then keep right on trekking upward, with the MBA predicting that rates are likely to climb as high as 5.3 percent by the end of 2015. We have to agree with the forecast for a moderate upward trend through 2014, though we won’t be surprised to see rates stay closer to the 5.1 to 5.2 mark as 2015 draws to a close.”
The article goes on to explain that any mortgage interest rate forecast that has rates moving steadily in one direction is a far cry from the mini-roller coaster ride home buyers and those seeking to refinance dealt with in 2013. The guide explains that while mortgage rates in 2012 moved at a pretty tranquil pace, 2013 was a different story. Starting off with rates hovering near the 3.4 to 3.5 percent range for the first five months, no one really expected what was to come. By June rates had climbed to 4.0 percent, and then proceeded to rise and fall over the rest of the year in a crazy, unpredictable way, ending the year near the 4.4 mark.
Rates have now leveled out a bit, but there have still been some ups and downs, as is usual with mortgage interest rates. With the Fed taper in place,rates are expected to continue rising this year, with possible moments of recovery that mortgage borrowers can take advantage of. The Loan Love guide says, “The takeaway for you should be that rates are almost certainly headed upward and the better the economy gets, the higher that upward climb is likely to get. Freddie Mac’s chief economist Frank Nothaft recently told CNN that he expects rates to hit 5 percent as early as mid-2014. If his prediction holds true, that may have us tweaking our estimate that rates are likely to stay just slightly below 5.3 percent to close out 2015, but for now we stand by that figure.”
Loan Love ends by saying, “But overall, 2014 should still be a healthy home-buying year, with plenty of opportunities to purchase as well as lower down payments, and interest rates most buyers will still find very palatable. With interest rates almost certainly to rise as the months tick by, now is the time to get off the fence and look into financing a new home purchase.”
For more information on this subject, click here to read the full article at LoanLove.com.