Interest rates on the rise?
The Mortgage Bankers Association is predicting that interest rates will continue their upward trend.
MBA Senior Vice President and Chief Economist Doug Duncan said, "because of strong employment growth in March and April, rising inflation pressures and solid production growth, the Federal Reserve is likely to begin raising rates in June. Our forecast has for some time anticipated that the Fed would wait until late this year before starting to raise short-term interest rates, but the growth of the economy has accelerated and raised the likelihood of a near-term rate increase."
The Mortgage Bankers Association further predicts "While higher interest rates are expected to cause a slight moderation in overall home sales and residential building in the months ahead. MBA is forecasting a record number of new-home sales and only a slight decline in existing-home sales."
For a complete view of the press release, please go here.