Mortgage shoppers in 39 counties across the U.S. will enjoy higher conforming loan limits in 2016, while the rest of the country will have to get by with the same caps. According to the Federal Housing Finance Agency, the maximum loan amount for Freddie Mac / Fannie Mae acquisition will remain the same for most areas.
A recent prediction by the economists at Freddie Mac suggests that 30-year mortgage rates could hit 4% (on average) by the end of 2015. And the way things are going, we might get there even sooner than expected. The 30-year average rose again this week to land at 3.98%.
The Federal Reserve’s Senior Loan Officer Opinion Survey revealed that some U.S. banks are easing their mortgage standards. This means that borrowers could have an easier time qualifying for home financing in 2016. In contrast, standards appear to have increased for FHA-insured mortgages. The latest survey was conducted in October. The results were published in November.
The latest market survey by Freddie Mac brought good news for loan shoppers. Rates were down in both the 30- and 15-year mortgage categories. In fact, they’re lower today than they were at the start of this year. This flies in the face of earlier predictions, which predicted steadily rising rates throughout 2015.
Apparently, Americans have a lot of gripes about their mortgages. The Consumer Financial Protection Bureau (CFPB) receives complaints regarding a wide variety of financial products, but home loans have topped the list. In a recent report, the agency listed the 10 “most-complained-about” companies between April and June 2015.
Federal Reserve officials recently announced they would continue to invest in MBS while holding the federal funds target rate near zero percent. This has been their policy for several years now, and it could preserve the low mortgage rates we’ve been seeing into the fall of 2015, and possibly beyond. It’s good news for borrowers.
It might be getting easier to get a jumbo loan. A recent report from the Mortgage Bankers Association showed that lenders are easing credit requirements for these large, non-conforming home loans. But, generally speaking, it’s still harder to qualify for an “over-sized” product compared to a smaller (conventional) one.
Will mortgage rates rise between now and the end of 2015? The general consensus is yes. But a recent forecast issued by Freddie Mac suggests the increase could be both gradual and mild. The company expects the average rate for a 30-year home loan to rise to 4.3% by the end of 2015.
A recent report from the Federal Reserve Bank of New York revealed that more than 20% of student loan borrowers are behind in their payments. This could seriously harm their chances of qualifying for a mortgage loan down the road, when attempting to buy a first home. Let’s take a closer look at how these two things are related.
The temperature is rising and so are U.S. mortgage rates. This summer, the average rate for a 30-year fixed home loan rose into 4% territory for the first time since November of last year. The million-dollar question is, how long and how high will they climb? Here’s what home buyers need to know.