When will rates hit 5%?

by traviss on November 26, 2013


 

There’s been a lot of talk about when rates will rise.  We’ve actually already begun to see it over the last couple of months.  The Fed has been pumping in money to buy up mortgage bonds to keep rates down to stimulate the housing recovery.  As of last week, the Fed announced that they will taper off their buying of mortgage bonds which will result in a rate increase.  We have to start paying back the trillions that we owe somehow…

According to the chief economist of Freddie Mac, mortgage rates will hit 5% sometime before the end of 2014.  This could hurt the affordability of some buyer who are on the edge with qualifying for a monthly payment.  It’s important to get them into a house before the rate increase happens any more. 

If you are an agent, forward this to your buyers who are on the fence…it may be enough to push them off.

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