The June 2016 Mortgage Bankers Association rate forecast for the 30 year fixed rate mortgage is good news for anyone in the real estate market as the forecast was revised slightly downward from the previous month’s forecast. As we approach the end of Q2 for 2016, the 30-year fixed rate mortgage fell two-tenths of a point from last month’s forecast. Looking ahead at the remaining quarters of 2016, the forecast also eased for the final quarter or Q4 for the calendar year. The result of the easing is that the 2016 annual rate average rate forecast is also down from previous forecasts and is now forecasted to close out 2016 below the 2015 annual average rate by one-tenth of a point. Now do not get too excited as the forecast still shows a steady upward trend in both the quarterly average rate and the annual average rate but for the time being the easing will help to keep a favorable summer market for anyone looking to purchase or sell mortgage backed real estate.
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 persisting. We can expect fluctuations in the rate as they will not remain stagnant but will slightly deviate around the quarterly average.
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 loan is a home loan guaranty program offered to Veterans, military service members and eligible surviving spouses.
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