You may have read in the news recently that the drop in oil prices could also lead to a drop in mortgage rates. But what do these two economic factors have in common? According to Steve DiMarco, president of Key Mortgage Services, the link is indirect yet still accurate.
“It’s all about supply and demand,” said Steve. “Both the price of oil and interest rates are major indicators of the state of our economy, which is largely based on confidence in the market. When one is down, the other will also see a decline.”
Many experts are predicting that mortgage rates will increase in 2015, although Steve says we shouldn’t expect any large shifts.
“We saw a very healthy purchase real estate market in 2014, and while interest rates may be a half point higher at the end of 2015, there won’t be any major changes in the coming year,” said Steve. “Consumers who found themselves under water have many more options they can take advantage of, and I think this will lead to a more robust mortgage market and a continually robust real estate market.”
If you would like more information about the current mortgage market or 2015 predictions, please speak with a Key Mortgage loan officer.