Are Interest Rates Expected to Rise Over the Next Year

Dated: May 5 2021

Views: 14

Are Interest Rates Expected to Rise Over the Next Year?

Are Interest Rates Expected to Rise Over the Next Year? | MyKCM

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:Are Interest Rates Expected to Rise Over the Next Year? | MyKCM

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.

Blog author image

Nanci Gilbert, PA

Nanci strives to provide every client with a smooth and worry-free experience when it comes to buying and selling real estate. In an industry that can move very quickly, she prides herself on taking t....

Latest Blog Posts

Have Your Day in the Sun by Moving Up This Summer!

Have Your Day in the Sun by Moving Up This Summer Some HighlightsLonger days and sunny weather mean summer is upon us, and what better conditions than right now to upgrade to the home

Read More

Why This Is Not Like 2008 Again"

Why This Is Not Like 2008 AgainDuring the Great Recession, just over a decade ago, the financial systems the world depended on started to collapse. It created a panic that drove some large companies

Read More

The Home Price Appreciation Is as Simple as Supply and Demand

Home Price Appreciation Is as Simple as Supply and DemandHome price appreciation continues to accelerate. Today, prices are driven by the simple concept of supply and demand. Pricing of any

Read More

In Today’s Market, Listing Prices Are Like an Auction’s Reserve Price"

In Today’s Market, Listing Prices Are Like an Auction’s Reserve PriceFor generations, the process of buying and selling a home never really changed. A homeowner would try to estimate the

Read More