Not much to say about the September 2016 Mortgage Bankers Association rate forecast for the 30 year fixed rate mortgage as it mirrors the August forecast. In August, the forecast was favorable for anyone in the real estate market as the forecast showed a rate drop from the July rate forecast. With the forecast for September, the forecast has gone flat. Discerning any trend from the September forecast would be premature as it is too early to tell if September is representative of a bottom in terms of mortgage rates. But the forecast does suggest that the average rate is going to increase with the last quarter of what is an election year. The aggressive upward average rate trend also remains in the September forecast in both the quarterly average rate and the annual average rate. We can speculate that for the time being the easing that occurred will continue to provide stimulus for the immediate near term.
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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