A “Bouncy” Ride Ahead
That doesn’t mean you have to run out right now before rates skyrocket: Yun predicts that by December 2015, rates will be at about 5%.
However, it won’t be a neat, gradual ascent. Instead, rates will climb and fall over time.
“It won’t go from 4.1, to 4.2, to 4.3 [each week],” Yun noted. “It will be bouncy.”
Consumers will see the increase as soon as the first quarter of 2015, where rates are predicted to rise to about 4.4% for 30-year fixed-rate mortgages, according to NAR’s 2015 economic forecast. Mortgage rates for the rest of 2015 are predicted as follows:
- Second quarter: 4.7%
- Third quarter: 5.1%
- Fourth quarter: 5.4%