Interest Rates Expected to Climb

Interest rates have now reached 4% and above for FHA and VA loans and 4.25% for Conventional loans.  And interest rates are expected to be near 5% by this time next year and even higher in 2015 and 2016.  Rising rates could push some potential buyers out of the market.
This adjustment could drop the number of would be buyers by nearly 3 million.   

Could there be a positive outcome that results from the higher interest rates that could lessen the effects?  Quite possibly!  We may see a reduction in fees and a loosening of credit standards to help offset this and help buyers that had been unable to qualify during the past 3 years finally be able to purchase a new home.