While mortgage rates fluctuate daily and the interest rate you’ll pay on a home loan depends on multiple factors, most mortgage experts anticipate an increase in average mortgage rates by the end of 2014.
Before you panic, it’s important to recognize that mortgage rate predictions don’t always pan out. Actions by the Federal Reserve and the economy’s performance could send mortgage rates up or down at any time. Most economists predict mortgage rates will rise by the end of this year to somewhere between 5.0 percent and 5.5 percent. While of course any rate increase has an impact on your monthly mortgage payments, it’s important to recognize that mortgage rates above 5 percent are still historically low. Before the Federal Reserve began its programs to keep mortgage rates as low as possible in response to the housing and financial crisis, mortgage rates had rarely dropped to 6 percent or lower.
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