The October 2016 Mortgage Bankers Association rate forecast for the 30 year fixed rate mortgage dropped the quarterly averages from 2015 and now includes a 2018 quarterly average forecast but also includes a 2019 annual average forecast giving us greater insight into the future for mortgage rates. Otherwise, we are seeing no changes to any of the quarterly averages for the remainder of 2017. The quarterly averages for 2018 are consistent with the previous Mortgage Bankers Association report in that the annual average is unchanged at 4.6 percent. In past postings, we commented on the aggressive upward average rate trend with both the quarterly average rate and the annual average rate which persists with the October 2016 report as well. Of note, the 2019 annual average rate further exasperates this aggressive upward trend depicting the average annual rate reaching upwards of 5.4 percent.
Overall this forecast supports that the 30-year fixed rate mortgages are meandering upwards at a slow rate while the out year rate forecast is more aggressive. 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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