Expect Mortgage Interest Rates to Rise Significantly in 2014
Most industry experts believe that mortgage interest rates will continue to increase this year. Various analysts project those rate increases will take us somewhere between 4.8% and 5.3% by the 4th Quarter of the year.
The chart above are the most recent projections of where rates will be by the end of 2014.
We believe rates will be higher by year end.........perhaps closer to 6%.
Last month the Fed announced they would pull back some of their stimulus package which has been very helpful in keeping long term mortgage rates at such historically low levels for the past few years.
The chief economist for Fannie Mae, Doug Duncan, announced this past summer that he felt the Fed "would not be troubled with a 6.5% mortgage rate."
Freddie Mac VP and chief economist Frank Nothraft at virtually the same time explained:
"As the economy continues to improve, we expect to see continued upward movement in long-term interest rates. At today's house prices and income levels, mortgage rates would have to be nearly 7 percent before the U.S. median priced home would be unafforable to a family making the median income in most parts of the country."
Only time will tell, but we feel rates in the 6% range by years end are likely.
If you are thinking of making a move this year.......be it buying or selling....the time to act is now. When you are ready, call me. I can help.
Tony Morganti, CRS, ABR
330-352-9513
