Home Loan Rates Move Slightly Higher as Mortgage Market Approaches ‘Full Recovery’
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Mortgage rates in December 2015 edged slightly higher as credit reporting agency TransUnion reported that the US economy is nearly recovered from the 2008 recession. In addition, Freddie Mac released mortgage rate data for mid-December, showing 30-year mortgage rates at 3.95% vs. 3.93% in 2014. Fixed rate 15-year mortgages remained the same, and 5-year adjustable-rate mortgages were 3.03% vs. 2.98% a year ago.
The chief economist for Freddie Mac, Sean Becketti, reported that the economy added 211,000 new jobs in November 2015, exceeding analysts’ expectations. In addition, home purchase loan requests were up 29% from the same time in 2014.
TransUnion reports that both mortgage and credit card markets are performing quite well. Customer participation is improving and delinquency rates are low. They estimate the mortgage delinquency rate at the end of 2015 as being between 1.5-2%, a significant drop from 2009 when the rate was 6.89%. These factors lead to TransUnion’s belief that a full recovery from 2008 is not only well underway, but should be accomplished in 2016.
These improvements have been attributed to years of moving bad mortgage investments through foreclosure, growing employment numbers, and rising home prices. It is reported that average mortgage debt per borrower levels have risen, which is another indication that home prices have improved, leading to the need for higher borrowing levels. Overall, the outlook is positive for borrowers and investors.
AHL Hard Money Loans has Ft Myers Private Investors ready to help you with your mortgage needs. If you have poor credit, or a lack of a credit rating, you may have difficulty securing a mortgage for the purchase of your home. It may be more difficult if you are looking for a commercial mortgage without any credit history. Call AHL Hard Money Loans at (813) 368-9919 and discuss your needs with us. Our investors are standing by and are ready to help you.