The December 2016 Mortgage Bankers Association rate forecast for the 30 year fixed rate mortgage is showing the final quarter of 2016 ending slightly lower than previously forecast but overall closing out the year with the same 3.9 percent average rate. But that is where this forecast changes its tune to a more aggressive upward trend in the rate forecast through 2017 and 2018 than in previous forecasts while the 2019 annual orecast remains unchanged. With this month’s forecast we are seeing increased volatility in the forecast over previous month’s which suggests that change in the form of rate increases are forth coming.
Overall this forecast supports that the 30-year fixed rate mortgages have begun to meander upwards at a slightly more aggressive rate that previously forecasted with the out year rate forecast supporting the aggressive upward trend. Given the rate of increase in the average mortgage rates, the rates will remain at historically low levels for only the very near term. Overall we are still dealing with a nation wide housing shortage so we will need to keep watch to see if this aggressive pattern holds with future forecasts. We can expect fluctuations in the rate as they will not remain stagnant but will slightly deviate around the quarterly average.
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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.
CLICK HERE for more information on VA Home Loans.