Where Will Mortgage Interest Rates be in 2015?

Many people ask me where I believe mortgage interest rates will be in the next year or so. Unfortunately, there is no way of knowing, other than we know as the economy improves, and the Fed’s stop manipulating the monetary system, mortgage interest rates will continue to  rise. The folks at the Mortgage Bankers Association, just published a forecast on April 8^th, 2014. Here is the link to our mortgage market forecast and historical quarterly origination's, posted on the MBA website.The forecast provides quarterly data on historical and forecast ed housing starts, interest rates for 30 and 10 year fixed mortgages, and loan origination's.

Clearly, mortgage origination's have significantly dropped, primarily due to interest rates rising 1% in the last year. For example loan origination's for Q1 of 2013 was $524 billion versus Q1 of 2014 at $226 billion. However, both purchase of new and existing home sales has dropped, likely due to investors leaving the market and the recent run up in home valuations.

For people who are looking to purchase or refinance residential real estate, evaluate the cost of waiting, as interest rates WILL rise over the next year.

If you or someone you know, is looking to purchase or refinance residential property, send them my way for a complimentary analysis.