The Mortgage Bankers Association has updated their report since last month’s forecast. For the final quarter of 2014, the annual average forecasted rate for the 30 year fixed rate mortgage remained unchanged from last month but the overall 2014 forecast was revised down one tenth of a point to 4.2 percent for 2014. Looking ahead the forecast for 2015 is also suppressed from the previous forecast while the forecast rate for 2016 remains unchanged at 5.4 percent.
Overall this forecast supports that the 30 year fixed rate mortgages are anticipated to rise at a slow and steady rate over the next couple of years. We can expect fluctuations in the rate as they will not consistently increase over the forecasted period but will meander around the average. So while we are no longer at the historical record low rates of years past, the rates appear to remain favorable in the outlook and support continued economic growth particularly in the housing sector.
So what do these rates mean if you are seeking a VA home loans? The rates one actually qualifies is based on several factors including the loan program, credit score and credit worthiness. The forecasted rates are only intended to provide you with insight into what the market considers as the overall average rate for the given period. You must check with your financial institution to find out what rate you qualify and in some cases that rate may be lower than what you see forecasted by Mortgage Bankers Association. VA home loans is a home loan guaranty program offered to Veterans, military service members and eligible surviving spouses.
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