“Indications suggest that interest rates will rise as we move through 2021,” said Tom Florence, managing broker of RRT Real Estate. “But they are still hovering around 3 percent — a fantastic rate for borrowing money, making it a great time to buy a home. Here’s what several others have to say.
In fact, real estate buyers have enjoyed record low interest rates for several years. Will interest rates rise in 2021?
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 . . . .”
“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.”
The 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.
Need a reference for a mortgage broker? We can help. Call Tom Florence, managing broker RRT Real Estate, at 404-402-8062 today.