What 2015 Holds for Mortgage Rates

There are so many predictions by various different experts from various different fields about how mortgage rates will react in 2015.  In my opinion, they all sound about the same.  Whether the trend is predicted to go up or down, most experts are saying that there won’t be extreme changes in mortgage rates this year.  We’ve been experiencing the slowest recovery from economic downturn in the real estate arena since the depression, unless there are volatile changes in the economy or unemployment rates, mortgage rates will remain relatively stable.

     

As I previously blogged, mortgage insurance premiums doled out by the FHA have gone down, which naturally means that mortgage rates will decrease along with it.  This contributing factor along with continued economic weakness are another reason rates are predicted to stay down.  Employment rates are slowly rising, however, most of these employed Americans are still considered to be under-employed.  Consumers are still being extremely conservative during these times of financial recovery.  Other experts say that lenders aren’t ready for a surge in home-buying and therefore an increase in mortgage rates can’t be justified.  While still trying to implement and understand “Dodd-Frank” laws, closing a house in 30 days still proves difficult. 

     

Others are expecting an increase in rates.  The economy, albeit slowly, is improving and rising mortgage rates are a natural reaction to improved conditions.  The low rates that we’re experiencing now are not typical and are meant to stimulate interest in buying homes to improve the market.  However, rates can only increase so much before movement in the market comes to a halt and that usually tops off at about a 2% increase historically.  Some think that it won’t get that high because of rate at which our economy is recovering, and will come to a stand-still at about a 1.5% increase.

    

So, my friends, markets look stable and makes 2015 an excellent time to take advantage of these temporary low rates.  As the economy does continue to improve you can sit back and continue to enjoy your savings.  My one piece of advice is this; while it might be appealing to you to move during the warmer months this year, its appealing to everyone else, too.  That means that during the Spring and Summer rates always inevitably increase, so take advantage of the lowest rates you can now!

For more information on mortgage rate predictions, click here.