The future of mortgage rates is a hot topic right now and nobody has a crystal ball that will enable them to see into the future. Although it is impossible to predict what interest rates will do, the consensus shared by many real estate industry analysts and experts is that they should remain low in the foreseeable future. However, as the economy begins rebounding and the pandemic gets resolved, they are expected to start increasing. This increase won’t deter people from buying but it will probably be enough to discourage some individuals from refinancing.
The Outlook For The Balance Of 2021
The Freddie Mac research team has forecasted that mortgage rates will stay relatively low although a modest increase is expected during the balance of this year and 2022. Furthermore, they’ve also predicted that the home buying trends that have impacted the industry are going to continue as well. Stephen Mcwilliam of Florida State Mortgage Group quoted “The lower interest rates have resulted in a higher demand for housing despite the moderate increase in home prices. Consequently, the modest mortgage rate increase may reflect in the borrower’s buying power.”
Is It A Good Idea To Purchase A Home At This Time?
Industry analysts and experts expect the housing market to do quite well during 2021. So as a prospective buyer, you probably have several questions such as is it a good time to get a 30-year fixed-rate home loan? Should you purchase a home at this time? The answer is “YES” since there is a lot of incentive to buy right now. Since there’s no way of knowing when rates are going to start rising, you should take advantage of them and buy that home now. We can assist you make a decision that helps you save more on your purchase.
The problem with waiting to see what interest rates do is that you could wind up paying more for a home than you wanted to. Therefore:
- Since mortgage rates are going to start increasing, you need to take advantage of the lower rates while you can.
- With analysts predicting that home prices are going too slowly but steadily to increase, making a purchase in the immediate future will enable you to take advantage of the current lower rates.
If you’re still on the fence about purchasing a home now or waiting to see what home loan rates are going to do, the days of rates sitting at all-time lows are numbered. To learn more about today’s housing market, contact Florida State Mortgage Group, Inc. at (954) 359-3000. Call them today to know more about our services as you buy your new home!