{"id":1273,"date":"2020-11-19T16:44:49","date_gmt":"2020-11-19T16:44:49","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=1273"},"modified":"2020-11-19T16:44:49","modified_gmt":"2020-11-19T16:44:49","slug":"will-mortgage-rates-remain-low-next-year","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/will-mortgage-rates-remain-low-next-year\/","title":{"rendered":"Will Mortgage Rates Remain Low Next Year?"},"content":{"rendered":"
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Will Mortgage Rates Remain Low Next Year?<\/p><\/div>\n

In 2020, buyers got a big boost in the housing market as mortgage rates dropped throughout the year. According to\u00a0Freddie Mac<\/em>, rates hit all-time lows\u00a012 times<\/a>\u00a0this year, dipping\u00a0below 3%<\/a>\u00a0for the first time ever while making buying a home more and more attractive as the year progressed\u00a0(See graph below):<\/em><\/p>\n

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2020 Mortgage Rates<\/p><\/div>\n

When you continually hear how rates are hitting record lows, you may be wondering:\u00a0Are they going to keep falling? Should I wait until they get even lower?<\/em><\/p>\n

The Challenge with Waiting<\/strong><\/h4>\n

The challenge with waiting is that you can easily miss this optimal window of time and then end up paying more in the long run. Last week, mortgage rates ticked up slightly. Sam Khater,\u00a0Chief Economist<\/em>\u00a0at\u00a0Freddie Mac,<\/em>\u00a0explains<\/a>:<\/p>\n

\u201cMortgage rates jumped this week<\/strong>\u00a0as a result of positive news about a COVID-19 vaccine. Despite this rise, mortgage rates remain about a percentage point below a year ago.\u201d<\/em><\/p><\/blockquote>\n

While rates are still lower today than they were one year ago, as the economy continues to get stronger and the pandemic is resolved, there\u2019s a very good chance interest rates will rise again. Several top institutions in ththe real estate industry are projecting an increase in mortgage rates over the next four quarters\u00a0(See chart below):<\/em><\/p>\n

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Mortgage Rate Projections<\/p><\/div>\n

If you\u2019re planning to wait until next year or later, Mike Fratantoni,\u00a0Chief Economist<\/em>\u00a0at the\u00a0Mortgage Bankers Association<\/em>\u00a0(MBA),\u00a0forecasts<\/a>\u00a0mortgage rates will begin to steadily\u00a0rise<\/a>:<\/p>\n

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MBA Forecast: Prepare for Rising Mortgage Rates<\/p><\/div>\n

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As a buyer, you need to decide if waiting makes financial sense for you.<\/p>\n

Bottom Line<\/strong><\/h3>\n

If you\u2019re planning to buy a home and want to take advantage of today\u2019s low rates, now is the time to do so. Don\u2019t assume they\u2019re going to stay this low forever.<\/p>\n<\/div>\n<\/div>\n<\/article>\n

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\nPHP Houses
\n142 W Lakeview Ave
\nUnit 1030
\nLake Mary, FL 32746
\nPh:\u00a0(407) 519-0719<\/span>
\nFax:\u00a0(407) 205-1951<\/span>
\nemail:\u00a0info@phphouses.com<\/p>\n

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THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.<\/em><\/h6>\n<\/div>\n<\/div>\n
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