Little change seen for mortgage rates, although increase expected
Posted on Friday, January 10, 2014 at 10:10:57 AM
Residential financing rates are holding steady, with few changes seen on a week-to-week basis, according to recent data from Freddie Mac.
In the government-sponsored enterprise's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage averaged 4.51 percent for the week ending Jan. 9. That is down from an average of 4.53 percent last week, and higher than the 3.40 percent average from the same time last year.
Frank Nothaft, vice president and chief economist for Freddie Mac, said in a statement that the changes were small because of light economic reports. Minor shifts in other segments impacted residential financing.
However, these historically-low rates aren't expected to hang around for long, according to The Baltimore Sun. In fact, many financial experts predict that rates could get up above 5 percent during 2014. On a positive note, a stronger economy will also contribute to the uptick, and that could lead to more buyers.
"As the economy improves, people are more willing to make that big-ticket purchase such as a home," Greg McBride, senior financial analyst at Bankrate.com, told the media outlet. "We've had low mortgage rates for years, but when the economy stinks, nobody wants to buy a house."
Therefore, those interested in purchasing a new home may not worry too much if mortgage rates start to increase.