Mortgage rates climbed slightly as we entered into July, and are expected to continue to trend upward for the next several months. “Mortgage rates finally made a move higher today as financial markets transitioned from 2nd to 3rd quarter trading strategies,” Matthew Graham, COO for Mortgage Daily News reported July 1st. July might be the beginning for the next leg up for mortgage rates, if experts predicting upwardly trending rates are correct. Forbes contributor, Bill Conerly, forecasts that rates will continue trending upward, and expects mortgage rates to get up to about 6% by the end of 2015.
Long-term mortgage rates get up to around six percent by the end of 2015, but that’s not deadly to the economy. The interest rate changes are not exogenous changes that will harm the economy; they are endogenous, the result of stronger economic growth and part of the automatic dampening that occurs as the economy expands. – Interest Rate Forecast 2014-2015
What does this mean for you as a homebuyer or homeowner? Though rates continue to trend upward off their lows, it still a good time to purchase or refinance a home. From a historical perspective, mortgage rates are still low. But if Mr. Conerly’s forecast is correct, rates will continue to normalize up moving upward.
If you are thinking about taking advantage of low mortgage rates, we’ll be happy to show you options based on your specific needs and circumstances. Contact us at your soonest convenience. We can pre-qualify you for a home loan or to refinance over the phone, which will give you a good idea of your mortgage options.