Recently, Freddie Mac released their quarterly forecast noting:
“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.”
As shown in the graph below, Freddie Mac is projecting low rates going forward with a modest rise that’s expected to continue through 2022.
Freddie Mac isn’t the only authority forecasting low rates with a slight rise. Fannie Mae, The Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR) also anticipate low rates with a small increase as 2021 continues on. Here’s the quarterly breakdown of their projections and how they’re expected to play out over the next year:
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.
What does this mean for buyers?
Low mortgage rates are creating an outstanding opportunity for homebuyers to increase their purchasing power. As the economy gets stronger and we recover from the challenges of 2020, it’s natural for rates to potentially rise in response to a healthier economy.
With low rates fueling activity among hopeful buyers, there are a lot of people who are highly motivated and looking for homes to purchase right now. In this environment, it is challenging to find a home to buy…that exactly where I can help you. Working together I can help you navigate the process while rates are in your favor to make be the best move you can make.
Last Word
If you’re ready to buy a home, focus on making your move before mortgage rates begin to rise. Let’s connect to discuss how today’s low rates can create more opportunities for you this year.
Contact me today – working together we’ll Make Smart Moves Simple!
LISA MOLINARI, Sales Specialist, Weichert Realtors
20 Madison Avenue
Morristown, NJ 07960
(C) 908.337.1748
MolinariRealtor(at)gmail(dotted)com
lisamolinari.com
