2016 was a very spoiling year for homeowners. With mortgage rates falling below 4 percent at the beginning of the year, we got pretty used to seeing the historically low rates flutter up and down throughout the year. The question now is, will this continue for the hot summer season?
Forecasters believe that rates around or above 4 percent will be here to stay. According to “Fannie Mae, and the National Association of Realtors predict it will average 4.1 percent.” Although this may come as some good news, the market is always free to change things up on us.
Most real estate professionals agree that if you are on the fence about purchasing this year or not, 2017 might be as opportunistic a time as we are going to get in the near future.
It is also uncertain how the Trump administration might handle the fate of mortgage giants Fannie Mae and Freddie Mac. The Treasury Secretary under Trump, Steven Mnuchin, is for privatizing the government-controlled companies. “It makes no sense that these are owned by the government and have been controlled by the government for as long as they have,” Mnuchin told Fox Business.
This may result in more capital for the mortgage giants that would, in theory, allow them to purchase higher volumes of mortgages from lenders which would lower interest rates, or keep them from going higher. The opposite fear is that without the current government backing of securities issued by Fannie Mae and Freddie Mac, they will have to offer higher rates to draw in buyers of Mortgage Backed Securities causing interest rates to rise. The exact result of which is still waiting to be seen.
However you are feeling about the future, the present seems like a great opportunity for you to purchase a piece of the American dream. If you are interested in your mortgage options, please give me a call, text or email today.