Despite the revised 2014 housing market forecasts by the National Association of Realtors (NAR) and a lowering of its expected volume of purchase loans from previous forecasts by the Mortgage Bankers Association (MBA), both organizations see steady improvement coming this year. The NAR predicts existing and new home sales will continue to improve along with overall economic growth. The MBA, though a bit more cautious, was optimistic with a 1.7% increase in purchase loans over 2013 and stronger growth in new home sales.
So what does this mean for consumers who will need a mortgage to purchase a home in 2014? It means the likelihood of having to deal with rising interest rates.
Both the NAR and the MBA agree the rate for a 30-year fixed-rate mortgage loan will reach 5% by the end of 2014. While there are many variables that can affect interest rates, what is important to note is that interest rates will continue to rise during 2014.
So for buyers looking to make a move this year, the time to do so is sooner rather than later, while great interest rates are still available.
Looking to buy a condo in Jersey City and need help from a Real Estate agent? Call Janice Hall at (201) 232-8577.
