Will mortgage rates rise?Housing prices are not the only thing that has been headed higher lately. Mortgage rates have also been on the rise. At 3.81 percent, according to yesterday's Freddie Mac mortgage survey, current mortgage rates are nearly half of a percentage point above their low point for 2013. If the economy and the housing market continue to improve, mortgage rates may climb even further. Here are three reasons why mortgage rates may follow housing prices upward:
- Stronger housing and economic growth may bring greater loan demand.
- The Federal Reserve may ease its low-interest-rate policies in response to a strengthening economy.
- Spending growth may bring a little inflation.