Mortgage Bankers Association September 2017 Rate Forecast
The September 2017 Mortgage Bankers Association rate forecast for the 30 year fixed rate mortgage is showing the third quarter of 2017 as the lowest percent average rate for the next five consecutive quarters and nearly reaching a whole percentage point up by the end of 2018. Historically, during the forecast period the average forecast rate since the previous quarter maintained a consecutive quarter-over-quarter average rate increase at a less aggressive rate than what is forecasted to occur moving forward. The aggressive average rate increase is expected to better control a run-up in home prices. According to Freddie Mac's September outlook report, total home sales are expected to increase 2 percent from 2017 to 2018 with a 4.9 percent increase in home prices in 2018.
Overall we are still dealing with a nation wide housing shortage so we will need to keep watch to see if this aggressive pattern holds with future forecasts. We can expect fluctuations in the rate as they will not remain stagnant but will slightly deviate around the quarterly average.
As such, if you are looking to sell, you can benefit from stable prices and strong demand:
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And if you are buying, affordability can become an issue with rising interest rates and rising home prices so the earlier you get into the market the better your chance to still get a relatively low interest rate on a mortgage but you need to take action now:
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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.
CLICK HERE for more information on VA Home Loans.
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