2015 Home Loans Rate Forecast
Well no one can really know what the future is planning for us, but here is a forecast analysis for the home loans markets.
Wall Street is predicting 2015 mortgage rates to move higher and 96% of consumers believe mortgage rates have bottomed.
Forbes bring 11 experts to add their forecast on the 2015 mortgage and housing markets:
Forecasts predict a boost in 2015 on groundbreakings of new single-family homes (NAHB: 837,000, Fannie Mae: 783,000, and Wells Fargo: 770,000), as well as new home sales (NAR: 620,000; NAHB: 547,000). read more..
The mortgage reports experts believe that the rates will plunge down some more:
There are several reasons to expect lower interest rates.
The first reason why mortgage rates will drop in 2015 is that there’s continued economic weakness abroad. The economies of China, Japan, Russia have been lackluster, at best; and the Eurozone has failed to show meaningful growth. An uncertain 2015 will drive investment dollars toward the U.S., benefitting the broader mortgage-backed securities (MBS) market. See more..
2015 Mortgage Rate Prediction
McBride expects the 30-year fixed-rate mortgage to stay below 5 percent in 2015, but it could experience some volatility.
“We’ll see rates near 4 percent on the low side if there’s an economic stumble or geopolitical crisis, and rates as high as 4.8 or 4.9 percent if the Fed missteps or misspeaks,” McBride says.
A misstep or misspeak would involve the Fed raising its rates too much or too quickly or accidentally signaling an intention to do so.
Will The Rates Rise This Year?
The home loans rates prediction of Investopedia are that the rates will eventually rise. Not as steep as they fell, but they are on the way up.
Barring another financial and housing market implosion, and if the economy continues to improve, expect interest rates to rise in the latter half of 2015. If they do jump to the 5% range it will be a modest hike when compared to historical averages. Rates will still be far below the approximately 8.5% 30-year fixed-rates mortgages have averaged since 1971 when Freddie Mac started tracking them. Rates averaged 6% in the years leading up to the recession. See more..