The Mortgage Bankers Association kept the first quarter of 2015 annual average forecasted rate for the 30 year fixed rate mortgage unchanged from the previous month at 3.7 percent. Looking ahead the 2015 quarterly forecast continues to show a consistent and steady increase in the average rate but the average forecasted rate for the current quarter dropped two-tenths of a percent to 3.8 percent. Even with the downward revision to the forecast the annual forecasted rate for 2015 remains unchanged from the overall annual forecast rate from 2014 at 4.2 percent.
Overall this forecast continues to support that the 30 year fixed rate mortgages are anticipated to rise at a slow, albeit slower than forecasted in March, 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. 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 Veteran’s Assistance or VA home loan? 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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