As we approach the middle of Q2 for 2016, the 30-year fixed rate mortgage remains on a steady and methodical upwards trend as previously forecasted. Mortgage Bankers Association is staying consistent and that upward trend is forecasted to continue through the remainder of Q2 and the remainder of 2016. The quarterly rate is on par with the forecasted 2015 annual rate, and in order to close out the 2016 annual forecasted rate in line with the 2015 annual average rate, the average annual rate must increase slightly to compensate for the lower average rates from Q1. At present the quarterly average rate for the current quarter is forecasted to remain below the final quarter of 2015 but we can anticipate that the summer market will push rates higher validating the forecast.
We do not have much new to say at this point other than to repeat what we have been observing. Overall this forecast, like past forecasts, continues to support that the 30-year fixed rate mortgages have increased at a slow and almost predictable rate that is likely to persist. 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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