SAN DIEGO, May 30, 2014 /PRNewswire-iReach/ -- LoanLove.com is a borrower advice website that strives to empower home loan borrowers with first class information, valuable resources and connections to top rated industry professionals. Their articles offer in-depth knowledge in an easy to understand package which has quickly turned the website into a trusted destination for current news and expert loan advice. Loan borrowers can now get a better idea of where interest rates will head this year with the help of a new article from LoanLove.com. Will home interest rates keep rising? This and many others questions are addressed throughout the article.
Many financial forecasters feared that loan interest rates would rise to greater levels throughout the year, which may be true but only partially so; Interest rates are still adjusting at a slower pace than what was expected. Even without these sudden jumps, homeowners may on the edge when it comes to future of home interest rates. Loan Love provides its own take on where interest rates might head by saying:
"There are numerous predictions of interest rate forecasts, with most focused on the idea that historically low rates enjoyed in recent months are not sustainable as the economy continues to recover. Therefore, the longer-term forecast would seem to suggest a rise in interest rates over the next five, or even 10, years.
However, a few analysts point not to the past year, but to 40 years of historical data in predicting where interest rates are headed for 30-year mortgages. When this data is closely examined before calculating a forecast, there is an overwhelming probability, slightly over 90 percent, that the rate will actually fall in five years, based on December 2013 to December 2018 comparisons."
But what about the short term effect of these home interest rates? Loan Love goes on to state that studies from analysts predict that rates will continue to rise by the end of the year – just as they had earlier this year. These growing interest rates are not expected to hinder the growth of the economy, however. Loan Love demonstrates an example of this by stating:
"Put into perspective, consider the following parameters:
- One percentage point increase from a 4.4 percent rate
- 30-year mortgage
- $100,000 home loan
The result is a mere $61 increase in monthly payment. If you are in the process of purchasing a new home, the current advice is to go ahead and lock in an interest rate once you've set your closing date. While they may differ when it comes to longer-range forecasting, most experts are still predicting a rise in rates before 2014 draws to a close. While increases in rates have been less than dramatic, the trend for them to inch upward is expected to continue and for those forecasters not relying on 40 years of historic data, there is the expectation that average rates will creep upward over the next five to 10 years. Those continued low interest rates are a sign of lingering attempts to address the problem of a hurting economy. While economic recovery has been steady, it has also been slow, with interest rates hovering around historic lows well into 2014 even as the housing market continues to draw strength. This has spelled less drama for rates in the first half of the year."
To learn more on the home interest rate forecast, please visit LoanLove.com to view the complete article.
Media Contact: Kevin Blue, LoanLove.com, 949-292-8401, firstname.lastname@example.org
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