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I am planning to buy a home next year, what is the outlook for mortgage rates next year?

by marymatilda from Dallas, Texas. Jul 8th 2013 Reply


Peter Botros (PeterBotros)
#72 ranked lender in New York - 895 contributions

Although no one has a crystal ball, the general consensus is that rates will continue to rise. In my opinion, if you can make it happen sooner, I would. Best Of Luck!

Jul 8th 2013
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,008 contributions

Well as you can see by the number of responses, that we all believe that rates will be higher.. we also know that property values are on the rise as well.. waiting to purchase could limit your buying power.. if your seriously looking into buying a home, I would not put it off any longer.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jul 8th 2013
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David Sanders (David_Sanders)
#781 ranked lender in California - 59 contributions

Same answer all around. Rates should continue to rise. Home values should rise. Economy should improve. Odds are these all "should." But again, we don't have a crystal ball...If I did I would be at the roulette table. Make it happen as quick as possible Mary.

Jul 8th 2013
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Jackie Stults (jstults)
#42 ranked lender in Illinois - 15 contributions

Hi Mary,No one can tell you what rates will be a year from now. Mortgage rates have been at historical lows for the last few year and are currently on an upward trend.I hope this helps. Jackie Stults

Jul 8th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

Hopefully the same but why don't you just buy today while we have an idea on what they rates are?

Jul 8th 2013
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Henry J Daniels, CMPSI, CMHS (HenryJDanielsNationalMortgage)
#14 ranked lender in Texas - 128 contributions

Hi Mary, The Outlook for Mortgage Rats in the Next 12 months is generally up. As the Economy improves and the Federal reserve ceases supporting the mortgage market. As to how high rates will go that will depend entirely on the economy. As a Rule Mortgage Rates rise on good economic news and fall on bad. If you are budgeting today on how much you can afford you can presume worst case that the 1% rule applies. If Rates stay low your payment will be below the 1% of the outstanding mortgages. If rates rise substantially the total mortgage payment of Principal, Interest, Taxes and Insurance may be near the 1% rule of thumb. Projecting Markets is a lot like weather forecasting the farther out in the future you look the less accurate the forecast. The trend currently since the end of April is up.

Jul 8th 2013
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#28 ranked lender in New York - 2,236 contributions

my opinion is rates most definitely will be higher. The only question is how much higher.Call us or email us at 201-962-3555 or Team@BestMortgageOption.com for ano cost no obligation analysis of your situation ask for Michelle or Benny. We will find the Best Mortgage Option to suit your needs! Check us out at www.BestMortgageOption.comAsk us about the awesome discounts we offer heroes as a Homes for Heroes affiliate!

Jul 8th 2013
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Peter Savino (855411LEND)
#100 ranked lender in New Jersey - 332 contributions

Rates will be moving higher as the economy becomes stronger, and the housing market recovers. No matter what rates are, intrest is a tax deduction (at least for time being) Buying a home is always a great investment, Home ownership offers so many rewards. Best of Luck www.HOMEMORTGAGEXPERT.com Peter Savino

Jul 8th 2013
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Steven Cook (stcookmortgage@gmail.com)
#38 ranked lender in Washington - 256 contributions

Mary -- there are no crystal balls to create accurate answer to your question. Most likely they will be higher than they are now, but whether thatwill be by a quarter point or two points is anyone's guess. You should talk with a local, licensed mortgage professional to figure out the bestplan for your situation.

Jul 8th 2013
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Jason Vondrak (jvondrak)
#186 ranked lender in California - 1,722 contributions

Although nothing is certain, rates are expected to continue rising next year. If you are able to buy now, you will likely be able to get a lower interest rate and pay less for the home (as home prices are also predicted to continue rising).

Jul 8th 2013
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Peter Botros (PeterBotros)
#72 ranked lender in New York - 895 contributions

Although no one has a crystal ball, the general consensus is that rates will continue to rise. In my opinion, if you can make it happen sooner, I would. Best Of Luck!

Jul 8th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,560 contributions

No one knows for sure, and there are a million variables, but the betting man will go with higher than today... The bigger question, is while higher is a safe answer. How much higher? I'd bet that this time next year we will be hovering in the low to mid 5% range. Historically awesome, but not where they were recently...

Jul 8th 2013
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Eric Vander Werff (Loanguy99201)
#88 ranked lender in Washington - 27 contributions

So many "experts" online and in the financial news are saying upward trend. Yet, we've seen a very similar short term spike in rates in 2011 for a few months, then it trended downward again. We've seen these swings up and down more than once in the last 10 years. I hope I am right that we will see another trend downward! Just an opinion - hoping for the best - I agree with some of the below posts that are encouraging you to move sooner than later on the purchase if you can.

Jul 8th 2013
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Adrielle Edwards (AdrielleEdwards)
#877 ranked lender in California - 96 contributions

Of course, it is impossible to know for sure exactly what will happen as rates depend on so many different factors. Everything I have read and analyzed tells me that rates will push higher though it should be at a fairly modest rate until the end of the year and rates will continue to rise in 2014. In general, the earlier you buy the better but if you need the time to save for a down payment or there are other factors in your life that you need to take care of before hand, you will be ok. Rates will likely still be very low historically.

Jul 8th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

Rates may be up. You may need to pay higher closing costs, in order to get a lower rate.

Jul 8th 2013
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,008 contributions

Well as you can see by the number of responses, that we all believe that rates will be higher.. we also know that property values are on the rise as well.. waiting to purchase could limit your buying power.. if your seriously looking into buying a home, I would not put it off any longer.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jul 8th 2013
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James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 313 contributions

Rates will go up

Jul 9th 2013
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Pete Bass (PeteBass)
#31 ranked lender in Connecticut - 476 contributions

No One knows the answer to that question- In general though, the outlook is for rates to continue to rise. But that can also be said for rents to rise also.Even though you are looking to purchase a year from now, you should find a lender that you can work with- come up with a strategy for you to implement, so that when you do apply for a mortgage, the process with go smoother and you will be more informed.

Jul 9th 2013
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Kiernan Brown (KiernanBrown)
#51 ranked lender in Michigan - 149 contributions

Based on all sources available new 30 year mortgage rate lows are expected to be between 4% and 4.5%. The 10 year treasury yield is expected to push past 3.00% and settle in at 4.00% to 4.50% due to the scaling back of the FED easing its Bond Purchasing Program(quantitative easing). All of this points to rates being higher next year than this year, barring any unforeseen circumstances. BUY NOW if you can.

Jul 9th 2013
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Rich Bonn (RichBonn2818411723)
#177 ranked lender in Texas - 50 contributions

Miss Mary: The general consensus is that rates will continue an upward trend. It will not likely be straight up, as the market makes shifts based on Fed announcements, world events, etc... and the market is not entirely rational. It is good that you are planning for your purchase ahead of time. One piece of advise that I would give is that it is important to start working with a lender now. This way you can see if you need to make changes to your credit or spending patterns to minimize the difficulty in getting a mortgage and get the best rate that is available at the time you apply.

Jul 9th 2013
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Robert Hanson (rhanson)
#2 ranked lender in Maryland - 642 contributions

Probably higher..... Keep my contact info for when you're ready and make sure to get 2 or 3 competing quotes! I am always happy to assist whether I work on your financing or not; So if you need more information, a pre-qualification, or a competing rate quote you can go to my web page and use my live support button to discuss or get advice on anything at all with me. Web Address is: http://www.loansfromrob.com/quote/ Email is rhanson@gladewaternational.com and direct phone is 240-752-7549. Good Luck -- Rob Hanson

Dec 18th 2013
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