Mortgage Rate Predictions for 2015

    Mortgage Rate Predictions for 2015

    Since 2008, the Federal Reserve has kept interest rates at record lows in an effort to boost our flagging economy … and the good news is, it’s working!   It’s been quite some time since the horror stories of 14% mortgage interest rates from the 1980’s.    For the past several years, our area has happily seen rates in the threes, fours, and even in the twos!

    But with the end of the government bond buying program, low gas prices, and an improving job market, experts predict that the Federal Reserve is at long last preparing to make a move to higher rates in 2015.

    According to Lynn Reaser, chief economist for Point Loma Nazarene University in San Diego, “The Fed will move gradually, taking its target rate up to around 1 percent from near zero at the present time.”

    “The bulk of next year’s increases will come in the back half of the year,” says Greg McBride, CFA, Bankrate’s chief financial analyst, an expectation the Mortgage Banker’s Association confirms. http://www.mbaa.org/default.htm

    What does this mean to you and me?

    Pure and simple: If you are planning to sell or purchase a home in the next year, in order to get the best interest rate on your mortgage loan, you will want to do so sometime in the next six months.

    Find out what you’re home is worth today!

    With the economy still a bit shaky, it could be a volatile ride, which is why it is best to get your paperwork together soon.  The expectation is that the 30-year mortgage rate will hover just under 5%, but if you want your rate to be in the low fours, you’ll want to lock in your home equity, refinance, mortgage or investment loan well before July.

    In other words – don’t delay!

    Want to get started in the pre-qualification process for a new loan (and a new home)?  Our Redux Realty team has walked through the process personally and professionally more times than we can count.  We would love to help you secure the best rate and the best home for you!

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