The top US
housing finance agency’s regulator said recently that his agency would soon
unveil the new framework in the early months of 2015 for how
government-controlled Freddie Mac and Fannie Mae will set mortgage guarantee
fees. The Federal Housing Finance Agency called off all plans to raise the
guarantee fees because the new director of the agency, Mel Watt said that
there’s more study needed before taking this decision. Watt, who was appointed
as the director by President Barack Obama to head the body that oversees the
nation’s largest housing finance firms, has made increased access to credit
score a priority and there are also raised fears that higher fees could also
hurt borrowers.
At the hearing
of the Senate, the Republican lawmakers criticized the decision to delay the
increase in the so-caled G-fees and expressed concern about the new plan to
allow lower and more affordable down payments on the mortgages that were backed
by the government agencies. Watt smartly defended himself with a more cautious
answer. He said that if he raised the G-fees without a further thorough
analysis, that would inconsistent with his responsibilities. He also added that
he expects to provide a framework and the rational for it sometime during the
first quarter of the approaching year, 2015.
2015 mortgage
predictions from reliable sources
You must be
thinking that it’s only November and we’re already discussing about the
mortgage projections and predictions for 2015. But in reality, it’s never too
late to start projecting. In fact, according to statistics, majority of the
mortgage shoppers start researching the market months before they actuall go
through the process of closing the loan. With this kind of advanced research in
mind, why would the analysts and experts wait? Here are some predictions for
the year 2015.
- Freddie Mac predicts the average rate for a 30 year fixed rate mortgage to reach 5% by the completion of 2015.
- According to the Mortgage Bankers Association, the average interest rate on a mortgage will also touch 5% by the end of 2015.
- Chief economist for the National Association of Realtors, Lawrence Yun, analyzes a gradually rising trend where the 30 year fixed rate mortgage could climb at 5.5% in 2015.
- Economist Dr. Bill Conerly predicts the 30 year mortgage to climb even higher next year, perhaps it may also reach 6% by the end of 2015.
- The Home Buying Institute’s projection are on the lower side, for a change. Their views match the outlook offered by Freddie Mac and Fannie Mae as they too see that the rates will average at 5%.
The 2015 mortgage rate forecasts are based on
industry-wide trends and averages. Freddie Mac’s survey depends on the average
rates reported y 125 survey respondents from across different places of the US.
In case, you’re a borrower who is about to buy your dream house in 2015, you
have to be careful about the mortgage rates. Have a good score and a low DTI
ratio to qualify for even lower rates.