Mortgage Rates in 2021

Interest rates hit record lows again and again in 2020. This led to a clear seller’s market with high demand and low inventory. Inventory is projected to slowly increase throughout the year, but there are still plenty of questions about what the future holds.

What are the projections for interest rates?

Overall, things are still looking promising. Although the rates are predicted to begin increasing, and continue through 2022, this will be a very slow and gradual process. Freddie Mac stated in their quarterly projections that they, “expect interest rates to average below 3% through the end of 2021.” Check out the graph below of upcoming predictions from Keeping Matter’s Current.

Several other sources such as Fannie Mae and the National Association of Realtors (NAR) predict similar increases.

What does this mean for buyers?

If you’re a potential homebuyer, it is still a great time to find your future home. Lower rates enable you to afford more within your budget. Even a fraction of a percentage point can make a big difference. Since rates will slowly continue to rise, it is better to start looking now than later.

With inventory low, it can be hard to find what you want. Working with a real estate agent will significantly increase your chances of success. Our team is ‘The Key to Real Estate’ and we would love to work with you!