Why 5% Mortgage Rates Are Still a Ways Off

Windermere Eastside

5% MortgagesAt the Eastside Windermere Kick-off, we heard from Matthew Gardner (Gardner Economics) and his predictions on our housing market statistics for this year. One of his discussion topics was the low mortgage rates we’re seeing. He predicted that we wouldn’t be seeing 5% rates this year, and if we did they’d be near the end of 2015.

In a recent posting on Credit.com’s blog, Scott Sheldon also share his reasoning for why we won’t be seeing 5% mortgage rates for a while.

Credit is still tight

Recently, Fannie Mae announced home lending is about to get easier for some borrowers by lowering the minimum down payment to buy a home from 5% to 3%. While this is a step in the right direction, it doesn’t make up for the macro-lending constraints still in place today.

While credit might be loosening in small niche areas, like helping first-time home…

View original post 270 more words

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s