By Stacey Lykins | Special to Ahwatukee Foothills News
Mortgages are going to cost more in 2014. After six years of steadily dropping, the home lending market finally hit an historic price floor in late 2012, with rates for 30-year fixed mortgages leveling off at about 3.38 percent. Rates remained in the 3’s through the first half of 2013 before finally popping up above 4 percent in June. The Mortgage Bankers Association is expecting mortgage rates to increase above 5 percent in 2014, and then increase to 5.5 percent by the end of 2015.
The fact that rates are going to rise is not unexpected. The question going forward will be how the higher rates will impact home sales and whether lenders can make enough from purchase loans to offset the drop in refinance activity.
