First Financial  
 

Mortgage Rate Predictions for 2016

ff 2
U.S. Consumers Offer Their Mortgage Rate Predictions For 2016

 Buy now? In four months? In a year?
Some of the stress can be taken out of the home buying decision when you realize that mortgage loans can always be re-financed, although with some fees and hassle. Keep in mind, too, the old saying,
“The best time to buy real estate is always 10 years ago.”
Ten years into the future, you won’t remember how you fretted over whether you should wait or buy right now. You’ll have 10 years of family memories in the home and neighborhood you’ve come to love.

All this said, when making this huge decision, it’s wise to research where mortgage interest rates are going in 2016. This past spring the most influential economists predicted that the Federal Reserve would raise the prime rate this fall in the August meeting. But then China became unstable, Greece revisited bankruptcy and American employment figures disappointed many. Interest rates stayed the same.

So, once again, now in the fall of 2015 pundits expect Janet Yellen and “the Fed” to hold off raising the prime rate (which in turn raises the mortgage rates) until the beginning of 2016, if then. Keep in mind, too, that America is facing a new challenge. The millennials, many of which are going into their home-buying 30s, seem to be holding off on buying homes. With their parents impacted by the recession, students themselves took out loans, many of which were as predatory as the balloon and interest only home loans that got their parents into trouble. Recent grads now shoulder an average of $30,000, and some have $100,000. They’re paying interest and principle on this big debt, eating into their home fund monies.

Particularly after seeing parents and friends lose homes, this huge generation (90+ million by most counts) seems fine with renting for the foreseeable future. In fact, it’s the renting millennials who’ve driven rental prices up in the past three years. Millennials aren’t exhibiting the home ownership drive their parents did. They’ve learned that Europeans rent families rent the same homes for generations, and don’t necessarily see home buying as the only signal of success. Finally, the tiny home and simplicity movements tell us that the millennials may not buy into the 3,000 square foot, brand new home. Therefore, home prices may not rise as they did in in the early 2000’s.

For now, housing prices may rise a bit over the next year, but most agree that they won’t skyrocket. Federal Reserve officials keep dropping that they’ll raise rates only when the data indicates the economy is heating up. With this month’s disappointing employment report, yet again, that doesn’t look like a possibility soon. Keep in mind that for the last three years, quarter after quarter, economists have been saying that THIS is the quarter the economy will rebound with a vengeance. Still, we’ve had at least 12 quarters of just tepid growth.

If unemployment takes a big dip and inflation looms on the horizon, Yellen will have to tighten. If that first rate hike doesn’t torpedo the stock market, she will continue throughout the year, but ever so gently.

The bottom line? Mortgage rates creeping up but very slowly in 2016. Watch the employment reports. The minute “employment leaps,” rate increases will heat up.

bigstock-Older-woman-with-a-laptop-76848398

First Financial’s Online, Mobile Mortgage Loans for Subprime Borrowers

First Financial’s lending partners can provide lower interest rates on mortgage loans because of their cost-saving, online structure. Apply for an affordable mortgage loan here, particularly if your credit rating is “fair,” “poor” or even “bad.” We specialize in getting families with subprime credit into homes. Fill out the application in minutes. Follow First Financial on Facebook to get smart budgeting and saving tips, too!

Comments are closed.

  • Recent Articles

  • First Financial
    5.0
    powered by Facebook
    Mony Lujan
    Mony Lujan
    2017-12-14T00:14:23+0000
    Thank you first financial - awesome service great help!!!
    Lorena Cardenas
    Lorena Cardenas
    2017-12-14T00:06:57+0000
    This company is fantastic and exceeded my expectations. Fast and easy, thank you.
    Alejandro Millan
    Alejandro Millan
    2017-12-14T00:05:21+0000
    What a great company! No need of high credit score and such a great Loan on short term. Thank you
    Alejandro Millan
    Alejandro Millan
    2017-12-13T23:59:55+0000
    First Financial is an excellent company. I Highly recommend 100%
    Maria Sanchez
    Maria Sanchez
    2017-12-13T23:59:50+0000
    My experience with First Financial was more than exceptional. They are the best!
    Tytiana Lechelle
    Tytiana Lechelle
    2017-12-06T12:29:59+0000
    Stephen Calvin
    Stephen Calvin
    2017-12-05T00:09:19+0000
    David Mitchell
    David Mitchell
    2017-11-17T20:18:57+0000
    Tara Rae Doran
    Tara Rae Doran
    2017-11-09T01:40:05+0000
    I was in a really tough situation and First financial was able to help me out quickly without effecting my credit score.
    George Gill
    George Gill
    2017-11-07T23:07:32+0000
    Kate Hughes
    Kate Hughes
    2017-10-25T23:50:10+0000
    First Financial was extremely friendly and took a lot of time to explain the entire process, making it much less daunting from the beginning. Thank you!
    Bill Burns
    Bill Burns
    2017-10-18T16:32:57+0000
    My Friend Amber recommended me and Im glad she did these guys are great! I would recommend my friends too!
    Lara Lu
    Lara Lu
    2017-10-14T02:49:18+0000
    First Financial made me feel welcomed, comfortable and answered all of my questions. They are very professional and willing to help others. I would highly recommend them!
    Justin Petix
    Justin Petix
    2017-10-11T20:00:21+0000
    First Finacial was really there for me when I need a small loan to start my business. Thank the staff especially for me! Fast and easy, made me feel like family.
    George Jordan L
    George Jordan L
    2017-10-11T18:04:04+0000
    Seems like a great service for people in need of emergency money.
    Kenneth Bolam
    Kenneth Bolam
    2017-10-07T20:00:54+0000
    First Financial is awesome. Helping people find loans for bad credit and low credit score borrowers.
    Amber Dawn
    Amber Dawn
    2017-09-28T05:39:51+0000
    First financial have been flexible and accommodating to my needs . When I lost my job they were very understanding and assisted me with lower payments until I was back on my feet financially, it really made life easier . I would highly recommend First Financial to anyone for not only their very competitive interest rate but unbeatable customer service !!!!
    Fernanda Moreno
    Fernanda Moreno
    2017-09-25T19:41:09+0000
    **** Thank you **** First Financial is a great company, excellent. I will recommend friends and family to your company.
    Ana Sandoval
    Ana Sandoval
    2017-09-25T19:00:40+0000
    Loved this company!!! It gave me a quick answer and help !!! Thank you
    Monique Saldana
    Monique Saldana
    2017-09-25T17:27:04+0000
    This company is awesome. If you want money fast and easy this is the place to go. Keep it up First Financial !
    Mercado Campestre
    Mercado Campestre
    2017-09-25T17:14:55+0000
    We love this company "First Financial" Thank you very much for you excellent service!
    Norma Rodriguez
    Norma Rodriguez
    2017-09-25T16:53:38+0000
    We have had a great experience with your company, they really help you when you need money on time !
    Nohemi Salas
    Nohemi Salas
    2017-09-25T16:38:13+0000
    Great & professional company! Quick to respond and not based on credit score! Thanks first financial!
    Monica Saldana
    Monica Saldana
    2017-09-25T06:21:45+0000
    First financial is such a great company! Easy and fast!!! I recommend!!! �
    Stephanie Saldana
    Stephanie Saldana
    2017-09-25T03:23:27+0000
    Thanks First Financial for my loan. I'm so happy with the the company for approving me so fast and easy. Had a great experience with you.

First Financial

First Financial ® Corporate Headquarters 2850 Womble Road Suite 100-604 San Diego, CA 92106

Client Service Center: Main: 1-800-315-7791 Fax: 1-800-215-0217 (Monday–Friday 5:00am–6:00pm Pacific or 8:00am–9:00pm Eastern)

Merchant Services / High Risk Merchant Accounts: 1-800-950-0212 Fax: 1-800-215-0217

 

First Financial® is a Federally Registered Trademark

©1994-2017 First Financial®, All Rights Reserved. All other products and company names are trademarks of their respective companies.