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Mortgage Bankers Association August 2020 Rate Forecast

By
Real Estate Broker/Owner with Hawaii Dream Realty LLC RB-19372

 

The last forecast we reviewed was June 2020 at which point we were already experiencing the negative effects of the pandemic on the real estate market. The August 2020 forecast continues to show the waning effects of the pandemic as the forecasted average for the 30-year fixed rate mortgage dropped three tenths of a point to 3.1 percent.  As we look forward at the potential average rate for 2022, we find that the average rate steadily climbs a mere half a point keeping the rate at historic lows even in the out years.  No significant change in the forecasted rate is predicted for the next four quarters however with a Presidential election looming on the horizon, we can speculate a high degree of uncertainty with the forecast beginning with the fourth quarter of 2020. 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 the November 2012 Presidential election year!

 

 

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. Register on www.invest808.com  to receive the Housing Inventory Snapshot to follow the market trends.  The Housing Inventory Snapshot is also posted to our blog however in order to receive the monthly trends you must register on the website.

 

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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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Aloha and Mahalo,

Theresa Harden
Principal Broker e-PRO, SFR, Realtor

Direct: (808) 223-0429
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