As of December 23, 2014 mortgage rates for a 30-year fixed load stood at 3.735 while a 15-year fixed loan was 2.96% and a 5-1 ARM was at a 2.85% rate.
For 2015 many analysts are predicting that lending requirements will be more relaxed which should result in an increase in first-time buyers. Fannie Mae and Freddie mac are expected to ease down payment requirements to 3% which should enable more young people to buy their first home. According to the Mortgage Bankers Association, sales of new homes in 2015 may rise by as much as 13% while sales of existing homes may increase by 5%.
Finally, the supply of homes is should increase with the result that housing will be more affordable in the Bay Area. Rates are also expected to rise in 2015 although it’s difficult to say exactly when.