Rising Interest Rate Predictions
Everyone knows it is coming.... but no one really agrees on exactly when or where they may end up...
Recent surveys on major retail real estate websites already cite rising interest rate fears as buyer number one concern (with low inventory closely behind). Below is compiled some of the major real estate institutions predictions for 4th quarter 2014.
An interesting point on these predictions is that the typically rosy prediction from the National Association of Realtors (NAR) is significantly higher than Fannie & Freddie, and more inline with the traditionally conservative Mortgage Bankers Association. Towards the tale end of last year, NAR actually predicted rates to be closer to 5.4%/5.5%.
While rates have remained at historically low prices - and yes we now scoff at our past excitement at refi-ing below 6.5%, - when it comes to a buyer's purchasing power, the relative effect of the interest rate is profound
