Since the government reopened following its 16-day shutdown, mortgage rates have fallen and consistently remained near historic lows. According to a recent report by Zillow, mortgage rates have stayed low following the September jobs report. The average for a 30-year fixed rate mortgage fell to 3.95 percent , below Freddie Mac's average of 4.13 percent. The current rate is a drop from last week's average of 3.98 percent.
"Last Tuesday's underwhelming jobs report pushed mortgage rates below 4 percent for the first time in four months," stated Erin Lantz, director of mortgages at Zillow. "In the week ahead, we expect rates likely will stay depressed as markets digest modestly improving economic data and the lingering impact of the government shutdown."
The rate for a 15-year term loan fell to 3 percent, compared to 3.02 percent last week. Averages for adjustable-rate mortgages had fallen as well, from 2.75 percent to 2.7 percent. While the changes are minimal, the downward trend suggests that borrowers will be able to get low rates until next year.
"Affordability is still good compared to any time over the last 50 years. Mortgage rates are still around 4.5 percent; that's not high," Robert Shiller, co-founder of the Case-Shiller index, told CNBC. "Homes are still roughly, in real terms, where they were 25 to 50 years ago," he said.
Market predictions The Mortgage Brokers Association recently reported its 2014 economic forecast and expected mortgage applications to drop, despite low rates. As economic conditions improve, the Federal Reserve is expected to taper its quantitative easing program, which will influence interest rates to rise. As a result, fewer homeowners are expected to apply for refinance loans.
However, mortgage purchase loans are expected to increase in 2014, according to the MBA report. As home prices continue to rise, more borrowers are likely to be more confident in the market and become homeowners.
"We expect mortgage rates will increase above 5 percent in 2014 and then increase further to 5.3 percent by the end of 2015," Jay Brinkman, chief economist and senior vice president for research and education at the MBA, told Mortgage News Daily. "As a result, mortgage refinancing will continue to drop, and borrowers seeking to tap the equity in their homes will be more likely to rely on home equity seconds rather than cash-out refinances"
Mortgage Lending Real Estate Knowledge Base
Questions about buying or selling your existing home?
TMortgage Loans Colorado Madison WI, Denver CO, St Louis MO | (970) 585-4546 | Mortgage Calculator Options with Loan Quotes. Get Started Now With LF Loans Mortgage! Lock Your Rate - Calculate Payments - Compare Loans - Skip the Bank - Types: FHA Loans, HARP, VA Loans, ARM | Boulder, Ft Collins, Aspen, Pagosa Springs, Colorado Springs, Pueblo, Golden, Grand Junction, Steamboat Springs, Denver CO, Hannibal, Springfield, Troy, O'Fallon, St Louis MO, Chicago, Quincy IL | Home Loans in Armenia WI, Baraboo WI, Beaver Dam WI, Beloit WI, Brooklyn WI, Columbus WI, Deforest WI, Dell Prairie WI, Dodgeville WI, Edgerton WI, Fitchburg WI, Fort Atkinson WI, Germantown WI, Green Bay WI, Green Lake WI, Janesville WI, Lacrosse WI, La Valle WI, Lake Delton WI, Lake Mills WI, Lodi WI, Madison WI, Mauston WI, Mazomanie WI, Merrimac WI, Middleton WI, Milton WI, Milwaukee WI Monroe WI, Montello WI, Mount Horeb WI, Necedah WI, Oregon WI, Platteville WI, Portage WI, Prairie Du Chien WI, Princeton WI, Reedsburg WI, Ripon WI, Rome WI, Spring Green WI, Stoughton WI, Sun Prairie WI, Tomah WI, Verona WI, Watertown WI, Waunakee WI, Windsor WI
Questions about Lendem Financial mortgage loan options? Why you should think about using a mortgage broker vs a bank? Using a Mortgage Loan Officer that has access to all sources of lending institutiuons helps people get the best loan for their situation and offers all options on the market vs the programs at one bank. Call Todd Rubick of Lendem Financial and tell him why the bank said no... If your tax returns do not show your true income, or credit is less than perfect... Full service all source lending strategies will be offered for those that need them.