2013 Mortgage Forecast: Small Rise in Interest Rates Expected

The Premier Group Keller Williams House

Rise in mortgage interest rates very likely by end of 2013.

In an effort to get more buyers into the real estate market, the Federal Reserve has been keeping interest rates at a steady low over the past few years. However, according to the mortgage experts, expect mortgage rates to be higher at the end of 2013 than at the beginning of the year.

The main reason why the mortgage rates will rise is that the economy is expected to heat up this year. More consumers and small businesses are expected to borrow money, buy houses, and there is the expectation that more people will be employed. With all the positive economic activity, interest rates will begin to rise. Currently, the economy is showing some signs of gathering steam.

According to Inman.com, 30-year fixed-rate mortgages had an average rate 3.34 percent. During the week ending November 21, 2012, rates on 30-year fixed-rate loans hit a record low of 3.31, the likes of which Freddie Mac had not seen since 1971.

To ensure that solid mortgages are being written, lenders must now follow new qualified mortgage standards, which was issued by the Consumer Financial Protection Bureau.  These rules must be followed in order to determining whether a borrower qualifies for a loan. As with other regulations, there will be other costs associated with getting a mortgage that are expected to rise in the coming months. This is critical for those borrowers who have small down payments. Therefore, Bankrate.com cautions those who qualify to borrow money and are ready to secure a mortgage at this time to act now.

At The Premier Group/Keller Williams  in Woodstock, GA, our experience ranges from consistently managing and closing short sale and distressed properties to marketing and selling luxury homes. When you decide to sell your home or purchase a home, don’t hesitate to contact The Premier Group. We are dedicated to being the most qualified specialists that you can turn to for all of your real estate needs.

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