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.
Source: Real Estate with Keeping Current Matters
