Will Mortgage Rates Remain Low Next Year?

Will Mortgage Rates Remain Low Next Year?

If you are wondering will mortgage rates remain low next year. Here are what the experts are saying about the future forecast of the low rates we are seeing today.

In 2020, buyers got a big boost in the housing market as rates dropped throughout the year to record lows.

Record Low Mortgage Rates

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?

So, 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

Well the challenge with waiting is that you can easily miss this optimal window of time to take advantage of these record low mortgage rates and then end up paying more in the long run.

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.

Will Mortgage Rates Remain Low Next Year? Projections From The Experts

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?

If you are planning to wait until next year or later, Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), forecasts rates will begin to steadily rise:

Will Mortgage Rates Remain Low Next Year?

So, as a homebuyer, you need to decide if waiting makes financial sense for you.

Bottom Line

If you are 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. Let’s talk today so you can take advantage of the record low mortgage rates and accomplish your real estate goals.

I am committed to the real estate market to make sure you have all the information you need to make your next move. Make sure to check out all the resources I have to put together for you on my website and if you have any real estate questions or even just want to meetup for a quick coffee, reach out to me anytime. I look forward to hearing from you. Have a great day.

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