In 2020, buyers got a big boost in the housing market as mortgage rates dropped throughout the year. According to Freddie Mac, rates hit all-time lows 12 times this year, dipping below 3% for the first time ever while making buying a home more and more attractive as the year progressed (See graph below):When you continually hear how rates are hitting record lows, you may be wondering: Are they going to keep falling? Should I wait until they get even lower?
The Challenge with Waiting
The challenge with waiting is that you can easily miss this optimal window of time and then end up paying more in the long run. Last week, mortgage rates ticked up slightly. Sam Khater, Chief Economist at Freddie Mac,explains:
“Mortgage rates jumped this week as a result of positive news about a COVID-19 vaccine. Despite this rise, mortgage rates remain about a percentage point below a year ago.”
While rates are still lower today than they were one year ago, as the economy continues to get stronger and the pandemic is resolved, there’s a very good chance interest rates will rise again. Several top institutions in the real estate industry are projecting an increase in mortgage rates over the next four quarters (See chart below): If you’re planning to wait until next year or later, Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), forecasts mortgage rates will begin to steadily rise:As a buyer, you need to decide if waiting makes financial sense for you.
If you’re planning to buy a home and want to take advantage of today’s low rates, now is the time to do so. Don’t assume they’re going to stay this low forever.
Author:Melkys Martinez Dated: November 19th 2020 Views: 110 About Melkys: With over 14 years experience, Melkys Martinez provides real estate services to buyers and sellers l...
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With over 14 years experience, Melkys Martinez provides real estate services to buyers and sellers located in and around Tri county area. Having grown up in South Florida, Melkys is incredibly well-versed in the area's housing market and always manages to find her clients those hidden gems that other agents tend to overlook.
Melkys' nurturing style and dedication allow her to hold client satisfaction as her highest priority, she works hard to make the entire home buying and selling experience as productive and enjoyable as possible. Melkys wanted to be a real estate agent ever since she was a teenager and is passionate about servicing her clientele.
Whether her clients are first time buyers or sea soned investors; Melkys works tirelessly to accommodate their needs and exceed their expectations. Melkys works diligently to advertise and promote your home for sale. The efforts pays off because many clients have said she gets them more for their home than expected. Melkys works alongside a team of highly-skilled professionals, guaranteeing a smooth experience from beginning to end.
Through all the challenges of 2020, the real estate market has done ve
"I just closed today. Melkys was amazing thought the whole experience. Finding a home, paperwork and communication were 100%. She answered any and all questions I had and made the experience memorable. I will to everyone I know."