Will Mortgage Rates Remain Low Next Year?
November 18, 2020
November 18, 2020
In 2020, buyers got a big boost in the housing market as mortgage rates dropped throughout the year. According to Freddie Mac, rates hit all-time lows 12 times this year, dipping below 3% for the first time ever while making buying a home more and more attractive as the year progressed (See graph below):
When you continually hear how rates are hitting record lows, you may be wondering: Are they going to keep falling? Should I wait until they get even lower?
The challenge with waiting is that you can easily miss this optimal window of time and then end up paying more in the long run. Last week, mortgage rates ticked up slightly. Sam Khater, Chief Economist at Freddie Mac, explains:
Mortgage rates jumped this week as a result of positive news about a COVID-19 vaccine. Despite this rise, mortgage rates remain about a percentage point below a year ago.
While rates are still lower today than they were one year ago, as the economy continues to get stronger and the pandemic is resolved, there’s a very good chance interest rates will rise again. Several top institutions in the real estate industry are projecting an increase in mortgage rates over the next four quarters (See chart below):
If you’re planning to wait until next year or later, Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), forecasts mortgage rates will begin to steadily rise:
As a buyer, you need to decide if waiting makes financial sense for you.
If you’re planning to buy a home and want to take advantage of today’s low rates, now is the time to do so. Don’t assume they’re going to stay this low forever.
Stay up to date on the latest real estate trends.
The pandemic has led to both personal and economic hardships for many American households.
As a result, Americans are expected to move in record numbers this year.
If supply remains low and demand is high, prices will continue to increase.
If you’re aiming for homeownership someday, it may be in closer reach than you think.
Here are five keys to success for this important stage in the homebuying process.
Buying a home can be intimidating if you’re not familiar with the terms used throughout the process.
Similarly, others who already have their homes on the market remove their listings until the spring.
That, however, may make it the perfect time to buy your first home or move up to a larger one.
If you’re ready to buy this winter, let’s connect to discuss how to position yourself for success.
Trust him for expert real estate guidance rooted in deep local insight and seasoned experience. With his strong negotiation skills and client-first approach, he makes buying or selling confident, strategic, and seamless.
JEFFREY ADAMS
3120 Hamilton Blvd Allentown, PA 18103
