Are Interest Rates Expected to Rise Next Year?
Are Interest Rates Expected to Rise Over the Next Year?
Buying a home in Raleigh Durham has never been better when it comes to interest rates! The competition and lack of inventory…not so great! But the low interest rates have really made it more possible for people interested in buying a home in Raleigh or Durham!
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. This will impact nationally and locally for those looking to buy a home in Raleigh Durham or elsewhere.
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 . . . .”
Lawrence Yun, Chief Economist, National Association of Realtors (NAR):
“In 2021, I think rates will be similar or modestly higher . . . mortgage rates will continue to be historically favorable.”
“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 Mac, Fannie Mae, the Mortgage Bankers Association (MBA), and NAR:
If you’re planning to buy a home in Raleigh Durham, purchasing before mortgage interest rates rise may help you save significantly over the life of your home loan! We are Cindi & Zach Honeycutt, your favorite Raleigh Durham realtors! We would be honored to work alongside you on your raleigh durham home search!
The Honeycutts, Movil Realty, 919-730-0777 call or text anytime!