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Is 2015 The Year Interest Rates Finally Start To Rise?

By
Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

At the beginning of the year, for the last several years I hear predictions the Mortgage Interest Rates are finally going to go up, but they have not.  In fact if anything the Interest Rates are lower at the beginning of 2015 than they were at the beginning of 2014.  However, the question must be asked Is 2015 The Year Interest Rates Finally Start To Rise?

Some groups are predicting a rise in Mortgage Interest Rates in 2015 to 4.5% and some are predicting even as high as 5%.  That would be a significant rise in Mortgage Interest Rates from the well below 4% rate they are right now.  Greg McBride, chief financial analyst for finance website Bankrate.com, Expects the Mortgage Interest Rates to continue to go down at the beginning of the year, but then increase as the year goes on. 

All the predictions of rising Mortgage Interest Rates and the reasoning behind them all sound good, but the fact is we have heard plenty of good reasons why Mortgage Interest Rates were going to rise in the past, and they have done nothing but go down.  This indicates to me these high profile executives, and economist do not have any better idea of what the Mortgage Interest Rates are going to do than I do. 

One thing I do know, and that is the Feds need to be VERY careful about what they say.  The last thing we need is for a repeat of the panic Federal Reserve Chairman Bernanke created in 2013

So I will end this blog with the same question I began it with Is 2015 The Year Interest Rates Finally Start To Rise?  No matter what your answer is to this question it is, in my opinion it is just as good as the predictions of the so called experts.

 

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Posted by

George Souto
NMLS# 65149

C (860) 573-1308
CALL 7 Days/Wk
Fax (860) 760-6891

Email Me
About Me
My Blog

I am a Mortgage Loan Officer who can assist you with all your mortgage & refinancing needs in
CT, and RI

I can assist you with your Conventional,
FHA, CHFA, VA, USDA, & 203K loan programs.

I reside in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Haddam. E. Haddam, Higganum, Chester, Essex, Deep River.

 

Comments(39)

Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I wish I had THE crystal ball on this but I would say this: As long as oil stays low and with foreign governments with their banks doing quantitavie easing to stimulate their economies that combined with turmoil makes Treasuries and mortgage backed securities in the US a safe haven for funds.

Jan 15, 2015 05:51 AM
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi George - Any guess is good. The system is too chaotic to allow dependable prediction, and most of the policy moves are reactive rather than prescriptive.

Jan 15, 2015 05:58 AM
Dagny Eason
Dagny's Real Estate - Wilton, CT
Fairfield County CT, CDPE Homes For Sale and Condo

George Souto Good Evening George!!  Good question.  I guess will have to wait and see!

Jan 15, 2015 06:14 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

George, it would be kind of nice to have a crystal ball to know when the rates will increase.

Jan 15, 2015 08:04 AM
Kevin Mackessy
Blue Olive Properties, LLC - Highlands Ranch, CO
Dedicated. Qualified. Local.

Right now is the time to buy that is for sure.  I have some current buyers who told me they can lock in 3.85% today.  I just had a sale in August 2014 that was 4.625%.  

Jan 15, 2015 08:17 AM
Lanre-"THE REAL ESTATE FARMER" Folayan
Samson Properties - Bowie, MD
I don't make promises.I deliver results.SOLD HOMES

George Souto -I guess we will wait and see. Over the years the so called experts have been off in their predictions. These so called experts need to just do their job and stop predicting.

Jan 15, 2015 08:48 AM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Hello George,

My Texas (Oil) crystal ball says rates will stay down as long as the oil prices do!

Jan 15, 2015 10:45 AM
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

Good evening George Souto ,  I hope the interest rates stay the same for a while to see how everything else works out this year.

Jan 15, 2015 10:46 AM
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

George, all we can do is wait and see to know for sure! People who are worried about it might want to consider making their purchase sooner rather than later.

Jan 15, 2015 10:59 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

George as soon as the economy and the unemployment improves, the government will step back from controlling the rates and then it can only go one way...just sayin, Endre

Jan 15, 2015 11:26 AM
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

George Souto now that's been a question every year. I remember Zillow prediction of 2013 market - and to every one's surprise....we know what happened.

And at times, I tell my buyers the rates are low, you never know when they'll go up - and we hit 19-month low!

I'd want buyers to know that sometimes the rates will rise - so better buy now!

Jan 15, 2015 12:52 PM
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

 Good morning George. I don't expect them to go up too much based on the economic forecast and as long as our current administration stays in power. The economy still remains sluggish at best. The low interest rates seems to be the only thing that keeps the real estate market moving.

Jan 15, 2015 05:06 PM
Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~ yesmyrealtor@gmail.com

Predictions are like the farmers almanac.  Not always right.  We are supposed to have a worst winter than last year.  Not so far

Jan 15, 2015 07:15 PM
Rob Spinosa
US Bank - Larkspur, CA
Mortgage Loan Originator, Marin County

Personally, I believe that we will see stable to lower rates in 2015.  This is because the Fed will now need to more closely examine the inflation aspect of using rates to control monetary policy (as opposed to maximal employment).  Lower oil prices and the economic woes in Europe are deflationary and this will make the Fed hard-pressed to increase rates around Q2, like many expected.

All this said, I cousel my clients to ACT ON THE INFORMATION AT HAND.  Your home should not be a chip on the table of rate prognostication.  You simply cannot go wrong at today's rates.  And if things get better?  Great, you have options.  But if they don't, your supposed market savvy will be little consolation for the bird that got away.

Jan 15, 2015 09:05 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Unless there is a thriving, self-supporting economy and the middle class is whistling while they work, interest rates will be held down perhaps all year.

Jan 15, 2015 11:16 PM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

George, I love crystal-ball questions like this.  It’s not a matter of if, but when?  No telling at this point. I’m glad I have my refinance behind me.

Jan 15, 2015 11:31 PM
Randy Mitchelson,APR
Marketing Advisor & Squeeze Mortgage - Bonita Springs, FL
First Impressions are made at First Click

Despite stronger GDP recently, without wage increases it is hard to imagine having inflationary pressures that would force the Fed to take action anytime soon.

Jan 16, 2015 03:41 AM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

I think if they do start to rise the buyer pool will pull back, again, and they will drop the rates again to entice them back out to play.

Jan 16, 2015 12:33 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

No one has a crystal ball but buyers sitting on the fence should buy now as rates are low.

Jan 16, 2015 08:59 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

The low interest rates we have enjoyed for the last several years, have gone on far longer than I had anticipated.  Will they finally start to rise in 2015?  I hope not!

Jan 17, 2015 10:28 AM