Mortgage rates remaining low in 2021?

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Since mortgage interest rates are at record lows, will they continue to stay low throughout 2021, or will they start to rise? Freddie Mac released their quarterly forecast, saying, “The average 30-year fixed-rate mortgage hit a record low over a dozen times in 2020 and the low interest rate environment is projected to continue through this year. We expect interest rates to average below 3% through the end of 2021. While this is a modest rise from 2020 averages, the recent vote by the Federal Reserve to keep interest rates anchored near zero should keep rates low.”

Freddie Mac is projecting low rates going forward with a slight rise that’s expected to continue through 2022. Fannie Mae, The Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR) also anticipate low rates with a small increase in 2021. It’s important to note that, while a small change in interest rates can have a substantial impact on monthly mortgage payments, these rates are still incredibly low compared to where they were just a couple of years ago.

Low mortgage rates are fantastic for homebuyers to get more for their money while staying within their budget. As the economy gets stronger and we recover from shut downs caused by Covid-19, it’s natural for rates to potentially rise in response to a healthier economy.

There are a lot of people who are highly motivated and looking for homes to purchase right now to take advantage of these low rates.

This can make it challenging to find a home to buy, since there are more buyers than homes for sale. A local real estate agent will be key to your success if you’re thinking of buying. Working with a trusted real estate professional to navigate the process while rates are in your favor might be the best move you can make.

Contact me to discuss your next move.

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