Low Rates are Defying Expert Predictions 6/13/2014

Posted on , updated on by Mike Shore
As 2014 approached, several industry experts predicted that rates for 30-year fixed-rate mortgages would climb into the five percent range by this time of the year. Their forecasts seemed logical since the Federal Reserve announced it would begin tapering its mortgage-backed securities buying program, eventually ending the program later in the year. However, according to the Freddie Mac Primary Mortgage Market Survey? average 30-year fixed rates ? which started the year at 4.53 percent ? have fallen to 4.14 percent as of May 22nd.
?These lower than expected rates are welcome news with the home buying season underway and may even provide those who haven?t already refinanced possibly a reason to take another look,? commented Frank Nothaft, vice president and chief economist at Freddie Mac. According to its latest monthly U.S. Economic and Housing Market Outlook, Freddie Mac expects the 30-year fixed-rate mortgage to gradually increase and end the year around 4.6 percent.