Mortgage Interest Rates Will Rise Per The Experts
Real estate agents have been saying for the last couple of years that mortgage interest rates would be increasing.
There is real data to show that this has been true. Interest rates have risen from the range of 3.0 to 3.5 percent to an average of close to 4 percent.
This is not expected to be the end. Experts predict that rates will increase by another point up to 5.0 percent or more by the end of 2014.
Here are some of the predictions for the 4th quarter of 2014:
- Fannie Mae: 5.0%
- National Association of Realtors: 5.4%
- Freddie Mac: 5.1%
- Mortgage Bankers Association: 5.0%
Rates have been kept artificially low in recent times because of actions by the Fed. The Fed has been making bond purchases, which have kept the rate low without the influence of the normal market. Experts expect the Fed to taper these bond purchases in December.
For prospective buyers, who would wait until the end of 2014, basically, this would mean a ten percent increase in their mortgage payment, assuming that prices, which have been on an upward trend, stay steady.
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