2015 Mortgage Rates, Where Are They Headed?

According to four major entities, mortgage rates are expected to rise through 2015. But how much will they rise?

Think back to the first quarter of 2013, mortgage rates were under 3.5% then they shot up and have been falling off ever since. The volatility was due to the market trying to find an equilibrium point.

The main reason for trying to keep mortgage rates low was that the government was trying to spur the housing market and the economy at large. However, the economy didn’t quite rebound the way they expected. So they kept rates low. They were keeping that downward pressure on rates as a catalyst to get the economy moving. Finally we’re showing some signs that the economy is in much better shape.

The job market is improving, so there’s less pressure from the government to keep that downward pressure on mortgage rates. Now that the economy is moving again, we’re going to see mortgage rates slowly rise to a point that’s going to be almost a full percentage point higher by the end of 2015.

This isn’t some crystal ball mumbo-jumbo. According to Fanny Mae, Freddy Mac, the Mortgage Bankers Association and the National Association of Realtors, they all project a rise. If we average out each of their projections for 2015, we come to this conclusion.

While these rates are still historically low, they will have an impact on a homebuyer’s purchasing power. Contact our team today and we can explain why now would be a prime time to find the home you’ve been dreaming of. We can even put you in touch with local mortgage lenders.

You can reach The Kombrink Lobrillo Team at RE/MAX Great American North at (630) 488-3300.