Interest rates across the United States are still at all time lows, and New Hampshire mortgage rates are not an exception. With a relatively high cost of housing, the state needs a competitive interest rate market in order to stay competitive. Here is the recent news about current New Hampshire mortgage rates and the predictions for their future in 2016.
What are the current mortgage rates in New Hampshire?
New Hampshire is high on the list of cost of living, with a 121 ranking from real estate professionals. 121 means that New Hampshire costs approximately 21 percent more than the median cost of living in the United States. These relatively high costs of living come with a local real estate culture of demanding lenders and good credit borrowers. If you meet these top level criteria, there are many benefits, the most prominent of which is an extremely low mortgage interest rate. The current interest rate for a 30 year fixed mortgage with 20 percent down is 3.49 percent. This is 0.1 percent below the previous week’s rate of 3.59 percent. Keep in mind that this figure is meant for borrowers who are in the highest echelon of borrowers with a 740 or above credit score and steady employment. The benchmark is also meant for conforming and conventional loans.
The 15 year fixed rate is the most attractive at 2.71 percent, followed by the 2.74 percent refinance rate. All of the mortgage rates, including adjustable rate mortgages and jumbo mortgages, are below 3.6Â percent. All of the rates dropped from last month anywhere from 0.05 percent to 0.11 percent.
Why are the rates in New Hampshire so low?
New Hampshire has a relatively upscale set of borrowers. The communities are close knit, creating even more pressure for borrowers to keep up. Both of these things lower the overall risk profile of borrowers in the area to lenders. especially the local credit unions who do business with the entrepreneurs around the state. Much of the stability in the market comes from their willingness to accept the credit and the word of the self employed and small business owner, which forces the larger banks to do so as well in order to compete.
The volume of business in New Hampshire also helps to keep the mortgage interest rates down and stable across disparate market conditions. The flowing credit and good cash economy in the state will also help the state to weather bumps in the marketplace, so you will see much less movement in the New Hampshire market if something happens in the larger market.
What can I expect in the New Hampshire real estate market for the rest of the year?
Because New Hampshire will likely experience much less volatility than the total market, home buyers can count on a relatively flat mortgage insurance rate for the rest of the year. The trends mentioned above are likely to continue, and the buyer’s market will move in a way that is similar to, but less prevalent than the overall market.
Fannie Mae expects the mortgage interest rate to move up about one percentage point by the end of the year. Another seminal mortgage analyst organization, the Mortgage Bankers Association, has predicted a rise in the interest rate as well of at least a percentage point. Neither of these organizations are the end all be all for the market, and both of them are completely dependent on the movement of the Federal Reserve.
The Federal Reserve sets the basic interest rate of the country by setting the interest rate at which banks borrow money. It has remained at record lows ever since the 2008 housing crisis, and the Federal Reserve has not made any noise about moving the rate up. A large part of the rate is based on national averages and housing starts, and there is too much volatility in the total market to take a general census of the nation. For instance, the West experienced a seven percent rise in housing sales while the rest of the nation experienced a two percent loss in March. Overall, the West sold so much that it raised the average of the nation to a positive three percent over the previous month, and this means that the relatively healthy economy of New Hampshire will likely be overshadowed by the volatility that is in other areas.
If you are looking to buy a property in New Hampshire, you will have relatively smooth sailing for the rest of 2016. There is nothing on the horizon that seems to be affecting the local economy or the national market, and even the analysis from Fannie Mae and the Mortgage Banking Association does not really tell a full story of the market. They take the temperature of the entire market, and New Hampshire simply does not reflect this type of volatility.
2 Point Highlight
The flowing credit and good cash economy in the state will also help the state to weather bumps in the marketplace, so you will see much less movement in the New Hampshire market if something happens in the larger market.
Overall, the West sold so much that it raised the average of the nation to a positive three percent over the previous month, and this means that the relatively healthy economy of New Hampshire will likely be overshadowed by the volatility that is in other areas.
