Mortgage Bankers Association September 2019 Rate Forecast
"Historic lows" continue to persist and as we inch closer to the final quarter of 2019, the September forecast shows no sign that those lows are soon to be behind us. With the third quarter of 2019 closing out with a 3.7 percent average for the 30-year fixed rate mortgage, we have what may be the lowest interest rates for the 30-year fixed rate mortgage for 2019. No need to be concerned if you wanted to refinance your existing mortgage or looking to make a purchase because the low rates are forecast to continue throughout 2020 with the average annual rate only up one-tenth of a percentage point between 2019 and 2020. For the final quarter of 2019 expect a rate fluctuation around 3.8 percent.
Depending on market demand, the mortgage rates can support an increase in home values as mortgage rates remain relatively stable, and albeit low, with not much deviation in the quarters ahead. The flip side of our historically low mortgage rates occurs when the real estate market becomes stagnant and buyers are not pressured by concerns over rising mortgage interest rates to make a purchase. However supply or available inventory also cause changes to home prices. Complacent buyers may get out priced if the real estate market continues its record level upward trend.
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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.
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