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Blue Skies for Homeowners: What to Expect in 2016

If your list of New Year’s resolutions includes refinancing your existing mortgage or buying a new home, now’s a great time to get started. “We’re very optimistic about the economic outlook for 2016,” says Matt Helling, Vice President of Sales and Operations at Cambria® Mortgage™. “With historically low mortgage interest rates, attractive programs, and a loosening of credit guidelines, 2016 looks to be a strong year for homeowners.“

The Inside Scoop on Interest Rates

“For the first time in nearly a decade, the Federal Reserve raised the prime rate by one-quarter percent in December,” says Helling. “While mortgage interest rates are not tied to the prime interest rate, analysts anticipated that they would begin trending up as a result, but this has not been the case.  Mortgage interest rates have remained low and, currently, they are below four percent. Even though the Federal Reserve may raise the prime rate up to three more times this year, experts predict the 30-year fixed rate will remain at about four percent in 2016, making this a great year for consumers to refinance their current mortgages or purchase new homes or condos.

A Healthy Minnesota Housing Market

“We’re happy to report that, as a result of the continued economic growth in Minnesota, the housing market is very strong and we anticipate that it will remain healthy throughout 2016,” says Helling. “Across the Twin Cities metro area, the biggest challenge for prospective homeowners is a lack of homes for sale. This is causing housing prices to rise modestly, with many homebuyers making full-price offers and offers over the asking price. Because demand for homes is outpacing the supply, the new home construction market is robust, with a long list of homebuilders competing for a limited supply of buildable lots.” 

Getting a Home Mortgage is Easier than Ever

“The continued economic growth has also resulted in a gradual loosening of credit guidelines,” says Helling. “And, with an array of new home loan programs designed to make homeownership more affordable, it’s easier to get a mortgage now than it was several years ago.” If you’re thinking of refinancing, your Cambria® MortgageTM expert can help you determine what you qualify for and what best fits your needs. Loan types include: Rate and Term Refinance, which allows you to lower your interest rate and/or alter the term of your loan; a Cash-out Refinance, which allows you to refinance your mortgage and access the equity as cash; or an FHA Streamline Refinance, which may allow you to lower your interest rate. If you’re a homeowner with a mortgage backed by Fannie Mae or Freddie Mac, you may be eligible for the Home Affordable Refinance Program (HARP), which has been extended through December 31, 2016. Originally designed to assist homeowners who are underwater, or nearly underwater, refinance their mortgages, HARP has helped homeowners lower their interest rates and improve the stability of their loans by moving from an adjustable-rate mortgage to a fixed-rate mortgage. 

Schedule a Complimentary Mortgage Check-up

Inspired and encouraged by the positive economic outlook for 2016? We invite you to schedule a no-obligation consultation with Cambria Mortgage. If you’re a homeowner, we’ll provide a complimentary mortgage check-up and help you determine if it’s to your advantage to refinance. If you’re in the market for a new home, we can help you decide which loan option best fits your needs and goals. To schedule your consultation, please call Cambria Mortgage today at 952-942-0110.