The forecast for the 30-year fixed rate mortgage has tampered from the past months’ forecasts. The Mortgage Bankers Association forecast closed out 2015 three tenths of a point below 2014 annual average. Mortgage Bankers Association has backed off their forecast for hiking the quarterly average rate for the first quarter of 2016 and the overall forecast for the annual average rate in 2016. In past forecasts, the quarterly rate was on par with the forecasted 2014 annual rate. The February 2016 forecast doesn’t consider reaching the 2014 annual rate to the later part of 2016. At present the quarterly average rate for the current quarter is forecasted to remain below the final quarter of 2015.
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 albeit at a slower trending rate than past quarters. We can expect fluctuations in the rate as they will not remain stagnant but will slightly deviate around the quarterly 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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