We’re looking at where interest rates are expected to go in 2021.

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We all know we’re in a real estate market that’s quickly ascending price-wise, but we’re still in a historically low interest rate environment. Throughout 2020, rates dropped 12 times and dipped below 3%, which has never happened. It’s an opportune time from a buyer’s perspective.

The question, though, is will interest rates remain this low as we enter 2021?

Well, in the second week of November, Pfizer announced some great news about the efficacy of a COVID-19 vaccine and the possibility of delivering it to the market. This caused rates to tick upward slightly. Naturally, we’re in uncertain times and never know what’s truly going to happen. Something could go wrong with this vaccine, but things are looking positive.

“If you’re thinking about waiting to buy,
you may miss out on
these unbelievably low rates.”

Therefore, many mortgage industry experts predict that we’ll see a steady increase in interest rates into the third quarter of 2021. This is just a prediction, of course—we can’t know for sure.

What does this mean for buyers? If you’re thinking about waiting to buy, you may miss out on these unbelievably low rates. The same goes for homeowners thinking about waiting to refinance. At 2:08, you can see the 2021 mortgage rate projections from Freddie Mac, Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors.

If you have questions about the cost of homeownership as it relates to interest rates or would like to know more about this topic, don’t hesitate to reach out to me. My team and I work with the best lenders in the industry, and we’re always here to help.