Homeowners and potential homebuyers will face higher rates in 2014. How high will rates go? That will depend on the Federal Reserve and how the economy performs.
The Mortgage Bankers Association expects the 30-year fixed rate to rise to about 4.8 percent by the second quarter.
The Fed has reduced its $85-billion-per-month bond-purchasing program to $75 billion and may continue to trim the program. The tapering was somewhat expected by investors, but rates are likely to climb as the Fed keeps scaling back on the bond purchases."If the Fed is able to taper and eventually stop buying bonds and the economic recovery gains steam, mortgage rates could move above 5 percent and stay there," McBride says. "But anything short of hitting both of those marks and mortgage rates will spend more time below 5 percent than above."The Mortgage Bankers Association expects the 30-year fixed rate to rise to about 4.8 percent by the second quarter of the year, reaching 5 percent in the third quarter, according to the MBA's latest forecast.That gives potential buyers time to shop for a home and still grab a low rate, but don't waste time."Mortgage rates will rise during 2014, so don't gamble with your rate lock," McBride says.
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Welcome to June 2020! What a ride this year has been so far; our homes
"This was the second time that my family has gone with Guest Group. Dawn and the crew helped my wife and I purchase our first home a few years ago. Now that our family has grown, we needed our house to grow as well. Our home was sold within 5 weeks and for 97% of the asking price. Then they found us our dream home on budget and in our desired area. They were more than willing to work around our complicated work schedule and helped us with finding a reputable mortgage broker and home inspector. Should we ever desire to move again, the Lawton team will be who we go with!!"