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It’s the last work day for the whole year.  I like to take to take a few minutes every year and think about what has happened over the last 12 months and contemplate what I’d like to see happen in the coming 12.  I call it a period of reflection.  That’s why there is a photo of a reflection here.  Reflection in this instance is a homograph because the same word has two different meanings.  It’s been awhile since I was in the third grade so I actually had to look that up.  It’s also nice to look things up that I don’t understand. but I do that way more than once a year.  Where I am the only body in the whole building right now,  I have the perfect environment to sit and think.

So mortgage rates for 2016 finished higher than they began.  I expect the same thing to happen next year and will even go out on a limb and forecast that we’ll finish the next year with 30 year rates at 4.75%.  I am giving myself a good spread here by not saying whether that’s for government or conventional loans, but 4.75% would be a whole point hike higher for FHA and only 5/8% for conventional products.  As a point of clarification, that little forecast is something that I think will happen, not something that I’d like to see happen.  Keep rates low forever I say.

Have a Happy New Year!