The forecast for the 30-year fixed rate mortgage remains unchanged from the past month’s forecast. The Mortgage Bankers Association steadily and consistently increased the rate for the 30-year fixed rate mortgage and remains on schedule to close out the year three tenths of a point below 2014 annual average. Mortgage Bankers Association anticipates that the average rate will match the 2014 annual average within the first quarter of 2016 and then continue its steady and consistent upward trend into the far future leaving 2015 as the year when the average 30-year mortgage rate reached a historic low.
Overall this forecast, like past forecasts, continues to support that the 30-year fixed rate mortgages have increased at a slow and almost predictable rate that is likely to persist over the next consecutive quarters. 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 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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