The Motley Fool released a brief analysis of mortgages for 2014, and what we should expect for this year.
The bottom line is that mortgages are expected to increase in 2014. So, if you are thinking about purchasing a home or refinancing on 2014, rates could be better now than later in the year.
Read The Motley Fool Article: What Every Homebuyer Should Know About Mortgage Rates in 2014.
It’s likely that mortgage rates will rise above 5 percent this year, according to the Mortgage Banker’s Association (MBA).
“We expect mortgage rates will increase above 5 percent in 2014 and then increase further to 5.5 percent by the end of 2015,” said Jay Brinkmann, MBA’s Chief Economist and Senior Vice President for Research and Education in a press release. “As a result, mortgage refinancing will continue to drop, and borrowers seeking to tap the equity in their homes will be more likely to rely on home equity seconds rather than cash-out refinances.”
What does this mean for you?
If you purchase a home in 2014, you may want to lock in the rate quickly, especially if you buy the home early in the year.
And if you have put off refinancing, you may be able to get a lower mortgage earlier in the year rather than later.