This BLOG On Will Mortgage Rates Rise Or Will There Be A Correction In 2018 Was UPDATED On October 29th, 2018
Will Mortgage Rates Rise Or Will There Be A Correction In 2018?
- With the election of President Donald J. Trump, the economy seems to be in high gear with no signs of a slowdown
- Housing prices have been increasing nationwide with no signs of a slowdown
- The Federal Housing Finance Agency (FHFA) and HUD, the parent of FHA, has increased loan limits nationally due to rising housing prices
- FHFA increased conforming loan limits to $453,100
- HUD increased FHA Loan Limits to $294,515
- Many who have been waiting and taking their time in buying a home are now under pressure due to rising home prices as well as speculating will mortgage rates rise or will there be a correction in 2018?
In this article, we will discuss and cover the direction mortgage rates are headed.
Recent History Of Mortgage Rates
Mortgage rates rose a huge one week jump in mid-December 2017 where it sent panic.
- In a turn of events, after that sudden one week rise in mortgage rates, mortgage rates have continued to climb
- Many wonder Will Mortgage Rates Rise Or Will There Be A Correction In 2018?
- The jump was the biggest one week jump in mortgage rates in six months
- Many mortgage companies scrambled to lock their client’s mortgage rates
- As of today, mortgage rates have not back to this year’s best levels
- Rates are currently at its highest level it has been in the past two years
- There are many talks and rumors about the Federal Reserve Board raising rates again
But to this day, the Federal Reserve Board has been delaying in raising mortgage rates.
Current Mortgage Rates & Will Mortgage Rates Rise Further?
Data released from Freddie Mac reflect that the national average 30-year fixed rate on conventional loans have dropped 8 basis points where it is now at 3.78%.
- The data announced by Freddie Mac comes from a survey of the top 125 mortgage lenders in the United States
These 125 mortgage lenders make available these rates to prime borrowers with credit scores of over 740 credit scores and 20% down payment.
Mortgage Rates On Government Loans
Government loans have also followed the lead of conventional mortgage rates and are lower than the previous week.
- Recent statistics show that VA mortgage rates are far below any other mortgage rates
- VA mortgage rates on the average are 40 basis points lower than conventional mortgage rates and FHA mortgage rates are 25 basis points lower than conventional rates
- The zero interest rate policy promotes inflation, but inflation is stubbornly low
- Furthermore, economic growth doesn’t appear to be bringing positive cost pressures on its own
FHA Annual Mortgage Insurance Is At 0.85%
On January 26th, 2015, HUD has reduced the annual mortgage insurance premium from 1.35% to 0.85%:
it is a net 0.50% reduction in mortgage insurance premium for FHA Loans.
- With the reduction in mortgage rates, coupled with HUD reducing the FHA annual mortgage insurance premium, homeowners can get big savings and reduction of their housing payment
- Homeowners can save tens of thousands of dollars over the term of their mortgage loan
- The FHA streamline refinance is a very simple refinance loan
- The current borrower can do a streamline with no income verification
- So the debt to income ratios will not be an issue
- There is no appraisal required with an FHA streamline refinance
- There is no credit score requirement needed on an FHA streamline refinance
- The only thing that is mandatory and required to qualify for an FHA streamline is homeowner needs to have timely mortgage payments in the past 12 months
- Homeowners can have late payments on other credit payments
- Can have very low credit scores and you will still qualify for an FHA streamline refinance
Contact me for a free analysis of how much you will save by doing a streamline, contact us at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. We are available 7 days a week, including late evenings and holidays.
Refinance Current FHA Loan To Conventional Loan And Eliminate Mortgage Insurance
Many homeowners purchased their homes at the bottom of the housing bubble. This holds true especially homebuyers in the state of California. Many California homeowners do not realize that their homes have appreciated northwards of 30% plus in market value.
- These homeowners who have FHA loans
- They can qualify for a conventional loan where they can now get great mortgage rates
- They can eliminate their FHA annual mortgage insurance premium by refinancing their FHA to a Conventional loan
- California has probably the highest home values in the country and the average loan size is $400,000
- FHA annual mortgage insurance premium on a California home loan with an average $400,000 mortgage loan balance is several hundred dollars per month
- Can save the California homeowner tens of thousands of dollars over the term of their home loan
Contact us at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com for a free analysis of how much you can save by refinancing. We are a California direct lender with no overlays.
