Tampa Real Estate Hot Topic: Mortgage Rate Predictions for 2013
Last week we discussed the importance of understanding the effects that rising home prices have on mortgage rates and the buying power of consumers in the market to both buy and sell. The recent mortgage rate activity has caught the attention of the nation, and of course our local Florida real estate market. Since May 2013, the average rate on a 30-year mortgage rose from approximately 3.3% to 4.87% according to Freddie Mac. Executive vice president of McCue Mortgage, Kim Neilson, states that the market hasn’t seen an increase of this magnitude in years. Despite the recent jump, however, rates are expected to remain steady between 4-5% throughout the remainder of 2013. There are two main reasons for this situation on the market. Firstly, the Federal Reserve chairman Fred Bernanke indicated in mid-June that he might slow down the purchase of mortgage-backed bonds. These were designed to strengthen the secondary market for lenders and ...