|By PR Newswire||
|December 21, 2013 12:00 AM EST||
SAN DIEGO, Dec. 21, 2013 /PRNewswire-iReach/ -- LoanLove.com is a borrower advice website that is dedicated to helping home loan borrowers find a loan that they will love. It explains, and sometimes avoids altogether when possible, much of the complicated and stuffy professional language used in the mortgage industry and instead provides detailed advice and information in a down-to-earth, concise and often entertaining way. The website seeks to empower borrowers by providing them with helpful first class knowledge, valuable resources and connections to top rated industry professionals. Because of this, LoanLove.com has become a trusted destination for current news and expert loan advice. The loan advice website recently released an article entailing some of the interesting things to come in the mortgage world, such as an interest rates forecast for 2014. This article, titled "Mortgage Interest Rates Forecast For 2014" gives a detailed look at this year's predominant interest rate trends and what affect they may have for the upcoming year.
Loan Love's article first begins by bring readers up to speed on the direction interest rates are going: "Things are looking up, at least as far as mortgage rates are concerned as we head into 2014 and even beyond into 2015. Just how far up? The Mortgage Bankers Association experts are predicting in their mortgage interest rates forecast for 2014 that interest rates for a 30-year fixed-rate mortgage are likely to creep pass the 5 percent mark next year and then keep right on trekking upward, with the MBA predicting that rates are likely to climb as high as 5.3 percent by the end of 2015. We have to agree with the forecast for a moderate upward trend through 2014, though we won't be surprised to see rates stay closer to the 5.1 to 5.2 mark as 2015 draws to a close."
What the article also mentions to readers that interest rate predictions showing a steady movement in rates would be a change of pace after what mortgage borrowers experienced in 2013. After a fairly peaceful year for interest rates in 2012 and a moderately paced early 2013, loan borrowers saw at interesting development towards the start of June, as interest rates have begun to whirlwind all over the place. This can be seen in the whopping jump in interest rates, with rates being increased from the 3.4-3.5 mark all the way up to the 4 percent mark.
This is expressed further in Loan Love's article saying, "Interest rates leaped a half percentage point in July and August, hovering for just a bit at 4.5 percent. Then rates began sliding back down to 4.1 percent in October and holding there, more or less, for the remainder of the fall season before creeping back up to 4.4 percent as the year winds down. We aren't going out on much of a limb with our mortgage interest rates forecast by predicting rates are soon going to reach 4.5 percent on their way to the 5 percent mark—and beyond—that we are expecting for 2015. As the economy continues to slowly improve, the Federal Reserve will taper its $85-billion per month bond-purchasing program beginning in early 2014 and likely halt it altogether by September 2014. The Fed's bond-buying program has been keeping mortgage rates down, but the Fed has hinted in recent months that it plans to wind down the program. The takeaway for you should be that rates are almost certainly headed upward and the better the economy gets, the higher that upward climb is likely to get."
Despite these conditions, there is no need to be alarmed as the article points out. Rates may still climb, but interest rates as they are now can still be appealing and very affordable for many loan borrowers. Loan Love reiterates this point by saying the following: "… overall, 2014 should still be a healthy home-buying year, with plenty of opportunities to purchase as well as lower down payments, and interest rates most buyers will still find very palatable. With interest rates almost certainly to rise as the months tick by, now is the time to get off the fence and look into financing a new home purchase."
To learn more on interest rates forecast for 2014, please read the full article at LoanLove.com.
Media Contact: Kevin Blue, LoanLove.com, 949-292-8401, [email protected]
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