Worried about Mortgage Rates
If you are a prospective home buyer and you may be wondering whether or not the mortgage rates are going to increase too high before you actually make your purchase, it seems there may be little for you to be concerned about.
Let’s be honest, “Credit costs are going up…” says Brian Simon, COO with New Penn Financial. In all probability, most will probably not notice the impact right away. The changes in government will create some impact to borrow in different ways.
Even though, it seems, nobody is predicting a “steep increase” in interest rates, some are predicting that mortgage rates could reach 5% by the end of the year. With this in mind, some Real Estate Experts are saying that, those looking to buy need not rush out and buy right away.
In spite of what the Fed does in 2014, Bob Walters, chief economist at Quicken Loans, says consumers should be watching what happens at Fannie Mae and Freddie Mac, the two government-backed mortgage firms and how their activities will affect the cost of a mortgage.
So, the average family looking to purchase a home, whether it is their first or their tenth does not have to watch every little action made with the mortgage rates. Naturally, they should be cognizant of where the rates are going and recognize that they should increase “a little bit” in 2014.
Most probably, they will increase slightly in 2014.