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Are Interest Rates Expected to Rise Over the Next Year?

Are Interest Rates Expected to Rise Over the Next Year?

Conversation bubbles, to demonstrate conversations about interest rates.

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 Economistrealtor.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 EconomistNational 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 MacFannie Mae, the Mortgage Bankers Association (MBA), and NAR:

Mortgage rate projections for 3rd and 4th quarter 2021. Mortgage rate projections for 1st and 2nd quarter 2022, from Freddie Mac, Frannie Mae, MBA, and NAR. with averages for all four.

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.

Legal Stuff:
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. DreamWorks Real Estate, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. DreamWorks Real Estate, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.