After reaching record lows in 2012 mortgage rates are expected to rise next year according to the Mortgage Bankers Association. The good news is that rates are expected to rised slowly.
After reviewing the MBA forecast for 2013, Market Watch reported, “Rates on the 30-year fixed-rate mortgage are expected to average 3.8% in the fourth quarter of 2012, rising to 3.9% in the first quarter of 2013 and eventually rising to an average 4.4% by the fourth quarter of next year, the MBA said. The mortgage is expected to average 4.1% for all of 2013.”
It is important to remember that this is just a prediction. The Mortgage Bankers Association incorrectly predicted that a 30-year fixed rate mortgage would average 4.4% during 2012. What happened instead was rates fell dramatically and it appears they will average 3.8% for the year.
Whether rates hold steady, fall even lower or start climbing anything below 6% for a 30-year fixed rate mortgage is still darn good from a historical perspective. What do you think will happen to mortgage rates in 2013?