The second quarter of 2020 forecasted average for the 30-year fixed rate mortgage dropped one tenth of a point from the previous forecast to 3.3 percent bringing the rate below the 3.4 percent average rate for 2020. As we look at the potential average rate for 2021, we find that the average rate is only forecasted to slowly climb 2 tenths of a point in a two year period. However the quarterly average rate appears to remain relatively unchanged one year from today. The report shows a rather stable mortgage rate moving forward.
While the average is the result of rates above and below forecasted value, the 30-year fixed rate has reached an all-time low at 3.13 percent for this past week which last hit bottom in November 2012!
The mortgage rate graph depicting a steady decline during the past 40 years was from a housing and economic recovery webinar presentation prepared for the Hawaii Association of Realtors by Dr. Paul Brewbaker, a respected and renown local economist. Click Here if you would like to view a full recording of the webinar.
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So what do these rates mean if you are seeking a Veteran’s Assistance or VA home loan? VA home loan is a home loan guaranty program offered to Veterans, military service members and eligible surviving spouses. The rates one actually qualifies is based on several factors including the loan program, credit score and credit worthiness. The forecast 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 forecast by Mortgage Bankers Association.