Real Estate Mortgage Rates for 2014
Mortgages are going to cost more in the upcoming year, than they did in 2013. During the last six years or so the mortgage rates were steadily decreasing until the home lending market hit an all-time low in late 2012, with 30-year fixed mortgages tapering off at about 3.38%.
Rates remained in the 3's throughout the first two quarters of 2013 before we finally started seeing some 4%'s popping up around June and it appears that 4's are here to stay.
The Mortgage Bankers Association is predicting mortgage rates to increase to 5% throughout 2014, and increase to 5.5% by the end of 2015. Mortgage rates increasing should not be a shock to anyone considering buying a home. We knew all along historically low interest rates would not last for too long. What is on everyone's mind is how the higher rates will affect homes sales? So far, there doesn't seem to be an effect on homes being sold, but then again, the rates have been steadily increasing upward and have not spiked dramatically.