Posted 11/7/13

For the past few years, mortgage rates have reached – and remained at – historic lows. Between the low rates and federal stimulus incentives, millions of first-time buyers became homeowners and existing homeowners moved up. That was then. What’s going on now? Like the stock market, it depends when you check.The good news is that 30-year fixed-rate loans are still very low: 4.1 percent, according to USA Today on Thursday, Oct. 31. Yes, it’s a little higher than last year, but still a bargain compared to, for example, the 6.4 percent Freddie Mac reported in October 2008.

The more sobering news is that rates for 30-year, fixed-rate loans are expected to rise in 2014. The Mortgage Bankers Association predicts 5 percent next year, and 5.3 percent by early 2015. None of this should come as a surprise, and buyers should keep the prospective hike in, well, perspective. Rising interest rates are a sign of a strengthening economy. You'd be buying a house in a more economically stable environment, which is good news. The expected rise is slow and measured, and rates will remain a relative bargain.

The best person to talk to about ramifications of rising mortgage rates is your local RE/MAX agent. He or she can tell you about lending conditions for your area, and how interest rate fluctuations may affect your options.

http://www.remax.com/c/housing-blog/blog-post/the-ups-and-downs-of-mortgage-rates