The August 2016 Mortgage Bankers Association rate forecast for the 30 year fixed rate mortgage continues to provide great news for anyone in the real estate market as the forecast continues to drop from last month's forecast. With the end of Q3 for 2016 approaching, the 30-year fixed rate mortgage average fell another one-tenth of a point from last month's forecast. Even the approaching quarter average dropped. Overall, the forecast has pushed the 2016 calendar average rate three-tenths of a point below that of last year's average. But now the forecast also shows an even more aggressive upward trend in both the quarterly average rate and the annual average rate but for the time being the easing will continue to provide stimulus as we approach the end of the summer market.
Overall this forecast, like past forecasts, continues to support that the 30-year fixed rate mortgages are meandering upwards at a slow rate while the out year rate forecast seems to be becoming more aggressive. 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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