The average rate for a 30-year fixed mortgage rose to 4.01% this week, according to the weekly survey conducted by Freddie Mac. That’s the highest it has been since the week of July 23, and economists are suggesting that it could rise even higher in 2016.
Freddie Mac and the Mortgage Bankers Association have both made similar predictions that home loan rates will rise gradually in 2016. They recently got some new ammunition to support their views, courtesy of the Federal Reserve. Fed officials announced they will increase the short-term funds rate for the first time in years.
Home prices in San Diego County rose significantly in 2015, enough to prompt the Federal Housing Finance Agency (FHFA) to increase the county’s conforming loan limits. In 2016, mortgage borrowers will be able to finance up to $580,750 without crossing into “jumbo” loan territory. San Diego Conforming Loan Limits for 2016 A conforming loan limit […]
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.
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.