The Fed announced last month that they would be pulling back some of their stimulus package which has helped the housing market by keeping long term mortgage rates at historic lows for the last few years.
The chart shows the most recent projections of where rates will be at the end of 2014 by the four major agencies.
From Frank Nothaft, Freddie Mac VP and chief economist:
"As the economy continues to improve, we expect to see continued upward movement in long-term interest rates… At today’s house prices and income levels, mortgage rates would have to be nearly 7 percent before the U.S. median priced home would be unaffordable to a family making the median income in most parts of the country.”
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Home Buying in 2014: Interest Rate Projections