Where Are Mortgage Rates Going?

The new Federal Reserve chief has recently pledged to continue the tapering of bond purchases at the current pace which will no doubt result in rising mortgage interest rates. The current Freddie Mac 30 year rate is 4.28%. So where do the industry players think we will be by the 1st quarter of 2015?

Fannie Mae- 5.1%

National Association of REALTORS- 5.4%

Mortgage Bankers Association- 5.1%

Freddie Mac- 5.3%

By historical standards these rates are fantastic and our guess is that this will do nothing to dampen the recovery of the housing market.

Buyers now, however, can lock in these rates, increase their buying power, and save money for years to come.