Are Interest Rates Expected to Rise Over the Next Year?
Everyone is asking the same question, “Are Interest Rates Expected to Rise Over the Next Year?”. So far this year, mortgage rates continue to hover around 3%, encouraging many hopeful homebuyers to enter the housing market. However, there’s a good chance rates will increase later this year and going into 2022, ultimately making it more expensive to borrow money for a home loan. Here’s a look at what several experts have to say.
Danielle Hale, Chief Economist, realtor.com:
“Our long-term view for mortgage rates in 2021 is higher. As the economic outlook strengthens, thanks to progress against coronavirus and vaccines plus a dose of stimulus from the government, this pushes up expectations for economic growth . . . .”
Lawrence Yun, Chief Economist, National Association of Realtors (NAR):
“In 2021, I think rates will be similar or modestly higher . . . mortgage rates will continue to be historically favorable.”
Freddie Mac:
“We forecast that mortgage rates will continue to rise through the end of next year. We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.”
Below are the most recent mortgage rate forecasts from four top authorities – Freddie Mac, Fannie Mae, the Mortgage Bankers Association (MBA), and NAR:
Bottom Line
If you’re planning to buy a home, purchasing before mortgage interest rates rise may help you save significantly over the life of your home loan. If you’re planning to upgrade or downsize, now is the time to make that move. Everyone says it’s a seller’s market, part of that is because interest rates are so low that buyer’s want to purchase now! DreamWorks Real Estate will take the time to discuss all options with you. The team at DreamWorks will help you through the entire process, start to finish. First time buyers, sellers who want to upgrade or downsize, no matter what your personal story is we can help you navigate the Real Estate side of things. Buying and selling a home can be stressful, the team at DreamWorks is here to take away the stress, so you can enjoy the fun side of buying a home. Contact us today, we hold the key to your dream home. We look forward to working with you.