As of December 23rd current mortgage rates are at 3.73; that’s a seven point increase from around a week ago. Experts expect rates to remain steady through the holidays. Rates for a 5-1 ARM stands at 2.85% while rates for a 15-year fixed loan at 2.96%.
For the coming year analysts are predicting more relaxed lending requirements which may increase the number of first time buyers. Part of this is due to Fannie Mae and Freddie Mac easing down payment requirements to 3% which will make it easier for young professionals to buy a home for the first time. The Mortgage Bankers Association reports that sales of new homes may increase by as much as 13% while sales of existing homes is also expected to go up by 5%.
The supply of homes is also expected to increase and make housing more affordable in cities that are typically more expensive to live in such as the Bay Area. Rates are also expected to go up at some point in 2015 although it’s hard to pinpoint exactly when. The Federal Reserve has stated that it would raise the Federal Funds rate until mid 2015.
Written by Jackie for Realty Times at www.RealtyTimes.com Copyright © 2014 Realty Times All Rights Reserved.