Will Mortgage Rates Remain Low Next Year?

Dated: October 19 2020

Views: 4

Will Mortgage Rates Remain Low Next Year? | MyKCM

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):Will Mortgage Rates Remain Low Next Year? | MyKCMWhen 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? | MyKCMIf 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? | MyKCMAs 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.

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
Blog author image

Kathleen Comerford

Let The Comerford Group Be Your Key to Your Real Estate Success! I am a Broker and REALTOR, connecting buyers and sellers around the world. The Comerford Group is able to provide customers with excep....

Latest Blog Posts

Your 2021 Guide to Celebrating St. Patrick's Day in Sarasota & Bradenton

St Patrick's Day 2021 in Bradenton & Sarasota has a lot to offer for the week. There are several parades, concerts, and events going on in the Bradenton & Sarasota area.;

Read More

St. Patrick's Day treats are as satisfying as they are festive

St. Patrick's Day is finally here — which means it's time to cook up a delicious Irish feast! Sure, any green food can pass as festive on March 17, but how could a St. Paddy's

Read More

Relax & Breathe Deep with Outdoor Yoga

In the days of social distancing, you can still find plenty of ways to play in our beautiful and sunny region. Below you'll find a list of outdoor yoga venues to melt away the stress and enjoy the

Read More

Strawberries are in Season in Florida - Make February Berry Sweet

Looking for a sweet treat to make your holiday special? We've put together a berry sweet list for you to try. February is a great month to load up on strawberries! Check out the seasonal food guide

Read More