Where will mortgage rates go in 2015

If you plan to buy a home, sell a home or refinance your home, you need to consider what might happen to mortgage rates in the coming months.

The interest rate on the benchmark 30-year fixed mortgage started the year at right around four percent.

Greg McBride, chief financial analyst at wwwww.bankrate.com, expects rates to go a little lower during the first part of the year.

"So this is a great opportunity, if you haven't already refinanced your mortgage, to do so now,” McBride said. “A lot of people have either purchased homes in the last year-and-a-half or simply didn't have the equity to refinance the last time rates were at these sub four percent levels. They’re now in a position to do so."

McBride predicts greater volatility as we move into the middle of the year and learn more about what the Federal Reserve plans to do with interest rates.

“I think we’re going to start to see mortgage rates trending higher - not big time, just kind of a slow grind higher,” he said. “I do expect mortgage rates are going to stay well below the five percent mark throughout the year."

Even if rates go that high, that shouldn't stop a well-qualified buyer, McBride told me. Full Article