The fall before the rise?

A couple of times now since the first of the year I have sat down to report on the “experts” (Fannie Mae, Freddie Mac, MBA Mortgage Finance Forecast and the National Association of REALTORS) forecasts for 2016 mortgage interest rates.  Compiled in late December of 2015 these forecasts suggest that by 4th quarter 2016 we will see conventional mortgage interest rates a lot closer to 5% than to the 4% that we saw at the end of 2015. Every time I start this post, however, it seems that the current data is in conflict with the forecasts. What these forecasts perhaps failed to consider was a record downturn over the first ten sessions of 2016 in the stock market and a near implosion of crude oil prices.  The net result is that rather than trending up as projected we have actually seen mortgage interest rates drop, on average, a full 1/4% since the end of 2015.  So what do we know for certain? Only that we currently have a very unexpected opportunity to take advantage of mortgage interest rates that are lower than we seen in over six months.  The stock market and oil prices will find a bottom and recent commentary suggests that the Federal Reserve Bank will proceed with plans to raise the Federal Funds rate.  Will mortgage rates follow and align with the experts forecasts? Only time will tell.

Remember whether buying or selling, moving up or downsizing, Lincoln or Omaha, the Vaccaros; Paul & Susan, stand ready to assist you, your family, friends and co-workers.  Call or email us today!  Lincoln (402)817-0355 , Omaha (402)577-0820,  (Paul & Susan Vaccaro – CBSHome Real Estate 15950 W Dodge Road, Suite 200, Omaha, NE 68118 – Woods Bros Realty 3737 S 27th Street, Lincoln, NE  68502.

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