This past year has been a tremendous one for homebuyers and refinancers, with near-record setting lows for mortgage rates across the country. As we head towards another new year, the question on everyone’s mind has become: will we see the trend of low rates continue into 2021, or are we in for an increase?
Current Mortgage Rates
In 2020, mortgage rates were some of the lowest we’ve seen in over 3 years. They ended up being better than anyone expected or predicted. The housing market stayed strong, and there was also an increase in housing construction. For those who looked to buy or refinance in 2020, they were met with some great options for low rates for a variety of loan programs.
Because of the low rates, there was an increase in the number of refinances as the year went on as well. Some borrowers were able to lower their current mortgage loan rate as much as 2-3%. Overall, 2020 was a superb time to buy or refinance a home, and borrowers are still taking advantage of the low rates as the year starts to come to a close.
Mortgage Rates Forecast
What to Expect in 2021
The good news for those looking to buy or refinance in 2021, is that mortgage rates are expected to stay low as we head into the new year. But, if you are thinking about buying or refinancing, you should definitely get the process started early and get locked in at a good rate now. There is a chance that the Fed could cut rates a few times throughout 2021, but it’s hard to say for sure.
The predictions being made are not guaranteed, so make sure that you are shopping around for the best Mortgage loan rate as soon as you are ready to buy a home or refinance. One thing that most of the experts can agree on, is that the low mortgage rates won’t last forever. At any given time, rates are more likely to go up rather than down, so there’s no time like the present to make your decision.
2020-2021 will definitely go down as a time of historically low mortgage loan rates across the board. If you are thinking about refinancing your current mortgage, or buying a new home, reach out to a Mortgage Loan Officer today to talk about rates. They can let you know what the best programs are, and make sure you are getting the best deal possible.