Friday, November 20, 2020 / by Breanna Thornton
One of the biggest highlights of the market this year has been the record-breaking low interest rates. With rates dropping below 3% for the first time ever, affordability has skyrocketed. Now the big question is, how long will these interest rates stay this low? Could they continue to drop even more? Or will they climb up as we move forward?
These are great questions to address if you are looking to buy a home soon. Fluctuating mortgage rates could be the difference of thousands of dollars for you. The following graph shows the trends of rates in 2020 according to Freddie Mac.
Due to the slow economy and pandemic this year, the rates continued to fall. However, we cannot be certain this trend will continue as the economy begins to slowly recover. Most projections expect the rates will increase in 2021 and years after. The good news is that it won’t increase by much! The following graphs give an idea of the projected mortgage rates for 2021 and the years following.
Basically, even though the rates are expected to increase, it will still be very affordable to buy a home in the next year or two. However, it’s still important to keep an eye on your credit score and credit report so you can get the best help you can from a lender. By keeping up with the interest rates and improving your credit, you should have no problem buying a home for the foreseeable future.
With all this said, the projections above are only guesses. Right now we know the rate is at the best it has ever been, so there is a lot of opportunity. If you’re looking into purchasing a home soon, give us a call and we can help get you on track! Now is the prime time to go find your dream home, especially before mortgage rates rise.
Graphics from Keeping Current Matters
Header image from foxbusiness.com