Are you ready for rates in 2015?

3 things to know about interest rates in 2015

Here’s the skinny on what it means for mortgages

Interest question

Most every major mortgage finance economist is on record – or will be on record by the end of this week – as saying interest rates will rise in 2015.

And they are probably right. On the conservative side it’s between 4.5-5%, with some outliers thinking it could be as high as 5.3% by the end of 2015.

Of course, keep in mind that last year there was only one notable naysayer on interest rates rising – Capital Economics which predicted no change in 2014. Since it looks like 2014 will end with rates a little lower than the start of 2014, it shows that even when there’s consensus, it’s a good reminder to take every prediction with a grain of salt.

That said, the reasons most economists are giving for believing interest rates will rise in 2015 are on firmer ground, and some of the variables that were in play in 2014 – QM, QRM, tapering, QE – are now locked in place for 2015.

Therefore, barring any major economic upheaval, yes, mortgage interest rates will be gradually climbing.

So that’s one, and it’s really the easy one.

1. Mortgage rates will go up

Interest rates can’t stay bound at such low levels. The National Association of Realtors isn’t alone in predicting this will happen.

But what about two and three? Have a look.

Read more…

Author: kimhuntkw

We specialize in Real Estate in the Pleasanton, Dublin and Livermore areas of the East Bay in California

One thought on “Are you ready for rates in 2015?”

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