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…

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