Every year one concern for home buyers is what their interest rate will be.  Mortgage rates for 2015 are predicted to rise, but when and how much?  For most of 2014, the average rate for a 30-year fixed-rate mortgage has fluctuated between just above 4% and 4.5%. 

Here are four trends to watch for in 2015:

The demographic wave of Millennials will help boost prices.  

Baby Boomers made up the largest population for the past decade.  However, as of late last year, the now 23 year olds make up the largest population, followed by 24 and 22 year olds, respectively.  As this generation ages another year, they will begin to settle down, start families and begin to look for homes.

Young people will continue to demand housing where it's tough to build.  

Single-family home construction has been so subdued in part because the Millennial generation as a whoe prefers to live where housing is expensive and where building in difficult.

Mortgage rates will rise.  

The Federal Home Loan Mortgage Corporation, or Freddie Mac, predicts rates will rise to 5% in late 2015.

Home price increases will decelerate, but affordability will decline.  

It is predicted that home values will rise, but even slower than last year.  A survey of homeowners suggested that more of them will look to sell their home next year, putting more downward pressure on prices.

If you're thinking of buying a home, now may be the time since even a modest increase can increase monthly mortgage costs, depending on the size of the loan.

Blake Hanna, Realtor