Market analysts across the board agree it’s only a matter of time before current record low rates will rise. Interest rates have been consistently below 4% since November 2011, the lowest rates the country has ever seen since rate tracking began in 1971.
Economists from the National Association of Realtors, Mortgage Bankers Association (MBA) and Bankrate.com all project rates rising in 2013 to over 4%. Mike Fratantoni, an MBA economist estimates that rates will average around 4% by June of this year and reach 4.6% before 2015.
Lawrence Yun, an economist at the National Association of Realtors, said this about the foreseen rise in rates, “If rates rise to 4.5%, I think many consumers will still see that as a good bargain”; according to The Street, a financial market analysis site.