30-Year Mortgage Rate Forecast Tips

A great way to lock in the best mortgage interest rate is to shop around. By learning how to read a 30-year mortgage rate forecast, homeowners can pinpoint an ideal loan. Here are some useful tips for understanding mortgage forecasts to take advantage of the current lending climate.

Tips for Analyzing a 30-Year Mortgage Rate Forecast

30-year mortgages offer multiple benefits for homebuyers, including lower monthly payments and fixed interest rates. Because it is a long-term investment, it is important to lock in a good rate. Here are some tips for interpreting the current climate of 30-year mortgage rates.

Track Rates Over a Few Months

A mortgage forecast is a collection of data from a period of time, usually a few months or a week. There are often forecasts for the year in January, but because the market is subject to change, it can be difficult to predict the lending climate.

So, in order to find an ideal rate, it is best to track 30-year mortgage rate forecasts over a period of time (a few months) to determine if you should lock in your rate now or wait until later. Your First Bank mortgage advisor can provide informed advice on this issue as well, as they follow the fluctuations of mortgage rates and are trained to predict market behavior.

Know What Affects Interest Rates

There are a few factors that impact the lending climate in the United States:

  • The Federal Reserve (responsible for adjusting the amount of money put into circulation)
  • 10-Year Treasury Yield (the anticipated return on government investment and assets)
  • Housing Market Climate (the supply and demand for financed housing)
  • Lending Market (current credit rating averages and requirements for loans)
  • Inflation (rising inflation correlates with rising mortgage rates)

The combination of these factors changes mortgage rates day-to-day, depending on the economy. In the past few years, for example, economic factors caused mortgage rates to significantly drop. Now that the economy is growing again, interests rates are projected to rise.

Current Forecasts

Currently, 30-year mortgage forecasts are fluctuating between 3% and 4%. In 2014, the average fixed rate on a 30-year mortgage was at or above 4%. In 2015, 30-year mortgage rates hit a benchmark of 3.67% in April and 3.84% in May.

If you are hoping to buy or refinance a home this year in South Carolina, North Carolina, or Virginia, First Bank can help you lock in a great interest rate. Contact us today for a comprehensive 30 year mortgage rate forecast from one of our banking professionals.