Written by Original Writer | Posted in Finance and Money |

Though the US housing market is slowly recovering from the after effects of the global economic recession, yet the mortgage rates are expected to remain unpredictable throughout 2011. Jumbo mortgages will be easier to get as the summer fades and the fall begins. According to the mortgage professionals, these are two among the 5 projected mortgage trends this summer. The prospective borrowers are recommended to calculate the loan amount with the help of a mortgage calculator before taking out a mortgage so that they do not fall in future financial trouble, not being able to manage their monthly mortgage payments. Here are some predicted mortgage trends for 2011.

1. No one may know what to expect from the market: Will the mortgage rates soar or fall? This is the most common question that is being wondered by most mortgage experts. With the dawn of 2010, the Feds were buying thousands of dollars worth mortgage backed securities and these purchases implied a slight rise in the mortgage rates, but all the predictions were proved wrong. Instead of rising rates, mortgage rates fell, thus proving everyone wrong. As the economy has still not rebounded, the housing numbers are not looking impressive enough with the double digit unemployment level still prevailing in the US.

2. Refinances will become a dream for many: The average rate on the current outstanding mortgages was 5.97%, as per the Bureau of Economic Analysis. With the rate of 30 year fixed rate mortgages at 4.79%, it would seem that many struggling homeowners could breathe free with a home mortgage refinance but with present conditions; people are getting higher rate loans and are finding it difficult to refinance their mortgages. The homeowners have little or no equity in their homes and therefore they’re losing the ability to go for a mortgage refinance.

3. FHA may get stricter and tighter: For a long time, the Federal Housing Administration has said that sellers could contribute up to 6% of the price of the home, but this may gradually get stricter in the middle of August as the FHA will reduce the maximum seller contribution to 3% in accordance with the industry practice. The industry analysts have warned that the FHA lending may fall due to these stringent changes in the seller contribution.

4. Jumbo loans will become more accessible: Since 2008, the jumbo loans have been too expensive and the lending standards have also been too strict. But with the new changes, the jumbo rates have now dropped three-quarters of a percentage point and therefore they have become easier to get.

Thus, if you’re a prospective mortgage borrower, you can take into account the summer trends so that you may take measured financial decision. Make sure you calculate your loan amount through a mortgage calculator and then take the loan to avoid future discrepancies.

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