From Minneapolis, MN

The time of year has come when I make my mortgage interest rate predictions for the new year. My long range forecast is based on multiple indexes, theories, past industry experience, and some general hypothesizing.

The bulk of the weight this year is the ongoing reduction in quantitative easing, or tapering off the current Federal Reserve bond buying program, which started this month. If the economy falters, and the Fed halts or delays tapering, the anticipated increase in rates could be pushed back.

Below is my 2014 prediction for the average 30-year conventional fixed-rate mortgage loan:

January 4.875%

February 4.750%

March 5.080%

April 5.200%

May 5.300%

June 5.400%

July 5.500%

August 5.550%

September 5.625%

October 5.750%

November 5.860%

December 5.875%