What does 2014 hold for Richmond mortgage rates?
As we start this year we know that Richmond VA Home Buyers will maybe never see the lows of the 3% rates we saw in 2012 and 2013. With rates currently in the mid 4’s, what does 2014 have in store for mortgage rates and Richmond Real Estate?
We know rates will move up but how quickly will depend on two factors: employment and the Fed. Positive job news will cause rates to go up. Positive employment AND economic news will cause the Fed to limit QE (program of Federal spending) which means the government stops buying mortgages. So it really is all about jobs. As the economy strengthens and employment improves, rates will rise.
Last week, I listened to two economic advisors give 2014 mortgage rates forecasts. Both predicted rates steadily moving up this year crossing the 5% barrier in the summer and moving up from there to the 5.25 to 5.5 range.
Minor increases in Richmond mortgage rates change house payments less than most clients think. However, one thing is sure, if you are looking to buy a home in 2014, waiting will likely result in a higher interest rate as mortgage rates move up with a slowly warming economy, improving jobs, and a Fed cutting off its support of mortgage rates.
If your plans for 2014 include a new home act now while rates are still low. Contact The 20/20 Team – Keller Williams Richmond Virginia and The Cowart Mortgage Team today to get preapproved and see how we can help get you into a new home!