Mortgage rates continue on the upswing. Last week, 30-year mortgage rates topped 4 percent for the first time since 2014, reaching almost 4.2 percent, and they likely won’t stop there. Washington, D.C.-based Mortgage Banks Association predicts that we’ll see rates in the ballpark of 4.5 percent by the end of 2015 and even higher as we move into the coming new year. Due to this forecast, the housing market is predicting a surge from home buyers, and rightly so.
It is expected that nationwide mortgage originations will increase from 2014’s $638 billion to an approximate $730 billion by this year’s end. The current, stronger job market is also said to be a secondary reason for this monetary increase.
Uncertainty in global economy strengthens the US economy
Another factor that is said to influence mortgage rates is the instability of the world economy. As a result, future homeowners are the most likely to be affected by higher future rates. Therefore, current homeowners should look into locking in fixed rates before it’s too late. As the economy gains strength and stability, mortgage rates will certainly increase.
If you have questions about this continual rise in interest rates, or are looking to buy or sell a luxury waterfront property in the Palm Beach area, Jack Elkins would love to meet with you.