Mortgage Rates Expected to Remain Low in 2016
There is good news for prospective home buyers in 2016. Freddie Mac recently released their expectations toward mortgage interest rates for the new year, and the outlook is great. According to the Federal Home Loan Mortgage company, despite the rise in the benchmark rate from the Federal Reserve, home mortgage rates are anticipated to remain at historical lows throughout 2016. There will be a slow rise in mortgage rates, but they are expected to remain quite low with only minimal changes.
The latest Freddie Mac report for the week ending December 17 showed an average 30-year fixed interest rate mortgage at 3.97%, up two-tenths of a point from 3.95% the week prior. Comparing the rates to last year at the same time, there has been a small, steady increase from the 3.80% rate we saw in 2014. Interest rates for a 15-year fixed-rate mortgage also changed, with a bit more of an increase when compared to last year. The latest rate reported was 3.22%, up from 3.19% the week before. A year ago the average was 2.67%.
These rates are still well within historically low ranges for mortgage loans, and according to Freddie Mac, they are expected to remain low and will help keep the 2016 real estate market strong. Following the Federal Reserve benchmark rates is one key component the Freddie Mac uses to set mortgage interest rates. According to the latest report, 2016 is expected to reflect a gradual increase in the benchmark rates which will be paralleled in mortgage rates.
Interest rates in our specific region are similar to the national average. The latest figures as provided from Zillow reflect an average interest rate for a 30-year fixed mortgage at 3.77% and for a 15-year fixed mortgage at 2.95%. There is no large increase expected, so if you are thinking of buying, it will still be a great time to get a low rate locked in. I am proud to be able to make the real estate process move smoothly for my clients, and I am here to help with all of your real estate needs. If you’re looking for a warm and engaging professional to help you with the purchase or sale of your home, contact me today at 407-234-5313 or by email: Jeff@JeffRoyle.com.