Published on November 15th, 2013 | by Genevieve Williams0
Mortgage Rates Expected to Increase
Expect to see an increase in upcoming mortgage rates. As of the end of October, the Mortgage Banker’s Association (MBA) reported an average of 4.33 percent for a 30 year fixed-rate mortgage. That number is expected to rise significantly in 2014. The MBA predicts rates will rise to above 5% in 2014, averaging 5.3% by late 2015.
Why? Mortgage rates are affected by several factors, but they notably hinge on the Federal Reserve’s financial decisions. The MBA expects the Federal Reserve to bring its $85 billion monthly bond buying program to an end in the Fall of 2014. This program is a main contributor to the low interest rates.
What does this mean for you? The forecast predicts home mortgage applications to rise 9% in 2014. So, it is in your best interest to stay ahead of the trend instead of being caught in it. In other words, the sooner you purchase, the lower your rate will be. And the sooner you sell, the higher the value of your home. Stay ahead of the curve. Find out what your Chantilly or Elizabeth home is worth by visiting the Chantilly Home Value or Elizabeth Home Vlaue