Housing recovery is slow, and there are no signs of a quick recovery on the way. There is quite a bit of uncertainty when it comes to the future of the mortgage market. What we do know is that the Federal Reserve's quantitative easing program QE3 will be ending in October. Though effects of the end of QE3 aren't predicted to be felt until summer of 2015, they are no doubt on their way.

In a midyear analysis by HSH.com, 30-year fixed rate mortgages were predicted to reach over 5% at the end of this year. Though rates in the 5's are still considered low when compared to those of times past, today's average 4.2% rate will be missed.

One thing that looked promising the HSH analysis was that the Fed will keep up its efforts to keep short-term rates down. This means that adjustable-rate mortgages (ARM) will remain low.

In the future, qualifying for a loan will continue to be a rigorous process, as everyone will be trying to avoid the chaos that ensued in 2008. This will result not only caution from lenders but also tightening federal regulations.

Subprime loans will be a thing of the past, most people agree. The public has lost trust in the market, and even if loans with no proof of income or loans that allow super low credit scores are available, they will not have much clientele. The public is getting smart about their home buying decisions and wary of being lured into toxic situations.

For a up-to-the minute interest rate quote give Prospect Financial Group, Inc. a call at 858-605-0952.