Forecasting mortgage rates can oftentimes seem like an impossible task, especially given the changes coming this year within the mortgage industry. However, there are certain markers that make predicting changes a bit smoother. If you’ve been considering buying a Lake Nacimiento home or purchasing in the Oak Shores or Heritage Ranch communities, this is essential information to know before starting your search! While many experts are predicting mortgage rates to be driven higher in 2014, they are still expected to stay exceptionally low – Even given a slight increase. For those purchasing Lake Nacimiento real estate in the new year, it is still an excellent time to buy. As a seasoned Lake Nacimiento real estate agent, I can assure you that these are the definite factors that will increase rates in 2014:
–Improving Economy. The recent improvement in the economy is a marked difference from years past. With a lower unemployment rate and improved spending, a better economy oftentimes goes hand-in-hand with an increase in long-term interest rates. While this means that mortgage rates for homes on Lake Nacimiento will likely go higher, they will still be considered quite low because rates were at such deep historical lows last year.
–The End of QE3. QE3 is better known as the third round of quantitative easing by the Federal Reserve, and it was a major reason that mortgage rates were kept so low last year. In December, the Fed announced that they will begin to reduce their purchases of bonds representing QE3, with an eventual goal of ending the quantitative easing altogether. Because they plan to cease this entirely by the end of 2014, this is a large factor in rising mortgage rates for the new year.
–Yield on the 10-Yr. Treasury Note. 10-year Treasury Notes, often compared to 30-year fixed MBS rates, aren’t a direct driver of mortgage rates but do have a significant influence. The logic is simple – If the yield continues to increase on the 10-year Treasury Note, MBS rates will have to rise in order to compete. The rise in MBS rates will cause mortgage rates to increase.
While it can seem like a lot to take in for those not familiar with the real estate, mortgage and financial industries, each Lake Nacimiento real estate agent at Oak Shores Realty is very well-versed in all aspects of economics and how it relates to home finance. Now is still an excellent time to buy Lake Nacimiento real estate, and our team is ready to walk you through each step of the process in a seamless, stress-free manner. Contact us today and find out how we can best help you purchase that Lake Nacimiento home that you’ve been dreaming about!
Grace Borzini
Your Local Lake Nacimiento Real Estate Expert
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Oak Shores Realty specializes in Oak Shores at Lake Nacimiento properties. Please contact us today to get more information on Lake Nacimiento lake homes. Oak Shores Realty can also provide you an insiders “Lake Nacimiento Buying Guide” with great information including maps and market information.