Posted by: phillipsre | January 7, 2014

Update on 2014 Mortgage Rates

mortgage-rates1If you are in the market for a new mortgage this year, be sure to read this article first. Interest rates may be on the rise for a number of reasons,

• The Federal Reserve intends to continue reducing its monthly purchases of mortgage bonds and Treasury securities, which will have the side effect of raising rates.

• The economy finally appears to be picking up steam, based on the latest quarterly data. Higher growth rates in turn will increase demand for available credit and likely nudge rates higher.

• New federal regulations for mortgage lenders, aimed at avoiding another bust, take effect Jan. 10. Not only will loan officers and underwriters scrutinize applicants’ income, debt ratios and credit extra carefully, they’ll likely charge more for borrowers whom they see as a higher risk. Some mortgage economists predict conventional 30-year fixed-rate loans could go to 5.5 percent before year-end.

Read the full article to understand a variety of options for your new market, that might be more beneficial down the road.

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