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Will Interest Rates Stay Low in 2021?

November 23, 2020

Hi! I'm Kaylynn. Realtor, mom, coffee lover & podcast binger. I help my clients go from overwhelmed about buying and selling at the same time to popping the champs and getting the keys to their new home.

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Will Mortgage Rates Remain Low Next Year? | Keeping Current Matters

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

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):Will Mortgage Rates Remain Low Next Year? | Keeping Current Matters

 

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:Will Mortgage Rates Remain Low Next Year? | Keeping Current MattersAs a buyer, you need to decide if waiting makes financial sense for you.

Bottom Line

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.

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© Kaylynn Kelley 2021 | COMPASS | photos by Anne Sage & Kaylynn Kelley

Let's make your #housegoals a reality. 

Edmonds & Mukilteo, WA

Kaylynn Kelley