For several years now the Federal Reserve has been flexing its muscle and keeping a tight rein on the movement of interest rates as a means of stimulating the housing recovery. It seems now though, via Lawrence Yun – the Chief Economist for The National Association of Realtors – that this gravy train might finally be coming to an end. According to an article from housingwire.com , Yun has said he expects mortgage rates to reach 5% by 2015 and 6% by 2016. While no doomsday scenario, to keep the housing recovery from sputtering, lenders will need to ease up on credit restrictions and open the market to a broader pool of borrowers.
Of course even the experts can be wrong – but it does seem that the end of the era of cheap money is nigh upon us.