Mortgage Interest Rates in 2016


Everyone is speculating about interest rates. Will they go up in 2016 or will they remain low? A low interest rate allows the home buyer to qualify for a higher priced home. When interest rates go up, buyers do not have as much buying power. Here is an excerpt from an article I recently read on

“Mortgage rates will likely be volatile in 2016. But the recent move by the Federal Reserve to guide interest rates higher should push mortgage rates higher in the new year than the historical lows they have been at for years. The 30-year fixed-rate mortgage will likely end 2016 about 60 basis points higher than today’s level. That level of increase is manageable, as consumers will have multiple tactics to mitigate some of that increase, experts say. However, higher rates will drive monthly payments higher, and, along with that, debt-to-income ratios will also go higher. The markets with the highest home prices will see the effects from the higher rates the most.”

I think rates will go up a little this year just because the housing market nationwide is so strong. And usually the Fed raises rates in an up market. Here are today’s rates as quoted by one of my favorite local lenders:


Conventional 30 year fixed rate mortgage = 4.125%

FHA 30 year fixed rate mortgage = 3.75%

VA 30 year fixed rate mortgage = 4.0%

Close Menu