Where Are Home Mortgage Rates Headed?
Oh where oh where could mortgage rates go?
Potential homeowners hold their breath each time a new mortgage rate report has been released – what about this one?
Next year, according to Fannie Mae, rates could drop as low as 3.4%!
Forecasters also foresee home price growth to moderate. Fannie Mae, Freddie Mac, and the MBA are all predicting the same – that home price growth will slow to 2.2% appreciation by 2021.
A spokesperson from Fannie Mae explains, “Rates fell for most of this year, and lower rates have translated into a stronger housing market. Both home sales and housing construction are firming. We expect a significant increase in mortgage refinance originations in the coming quarters.”
Last week, the 30-year fixed mortgage rate averaged 3.56%, down 1.06 percentage points from a year ago.