The Mortgage Bankers Association (MBA), an industry group, recently increased its mortgage rate predictions and forecast for 2017. This was partly a response to the surge in mortgage rates that occurred during the last few weeks of 2016, and is shown in the chart below. Umass office download. MBA analysts expect that the average rate for a 30-year fixed home loan will climb gradually throughout 2017, perhaps reaching 4.7% by year’s end.
Fannie and Freddie privatized - Michael Taylor, branch manager at First Home Mortgage Corporation, in Millersville, Md., says 2017 will see Fannie Mae and Freddie Mac begin the process of privatization. 'The agencies have paid back their TARP loans and have been paying the U.S. Treasury,' he says. Rates have already surpassed Freddie Mac’s 2017 prediction. Watch, then, for an updated forecast from the mortgage agency. In its May Insight and Outlook report, Freddie Mac called for 4.5%.
Predictions For 2017 Tube
Find all of Freddie Mac's original research and analysis on housing trends, the economy and the mortgage market here.
That’s up from a fourth-quarter projection of 4.4% in their previous forecast. Note: At the time this story was published, on New Year’s Eve, 30-year mortgage rates were averaging 4.32% according to Freddie Mac. Mortgage Chart Shows Rate Spike at End of 2016 Soon after the U.S. Presidential election, mortgage rates in the U.S. Began a steep upward climb that was still ongoing when this article was published.
You can see this trend clearly in the chart below, which is based on the weekly market survey conducted by Freddie Mac. Mortgage rate trends through December 29, 2016. Source: Freddie Mac PMMS. This chart also shows why economists and analysts have revised their mortgage rate predictions for 2017.