Friday, January 16, 2015

Interest rates are almost certain to rise in 2015.

Interest rates are almost certain to rise in 2015.


What will drive interest rates higher? The Fed is signaling that the third round of quantitative easing is coming to a close and that a short-term fund rate hike is inevitable.
•Chief Economist for N.A.R., Mr. Lawrence Yun believes interest rates for 30-year fixed mortgages will increase to 5%, possibly as early as the spring. He also thinks interest rates will rise another 1% by the end of 2016 to a 6% level.
•Both Freddie Mac and the Mortgage Banker’s Association forecast the 30-year fixed rate to reach 5% by the end of 2015.
•Dr. Bill Conerly, a well-known economist, sees interest rates climbing even further, to perhaps as much as 6% by the end of 2015.

Tip: If you’re contemplating on purchasing a new property, and are on the fence , this information is critical, so you can lock in a loan at historically low interest rates.

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