Mortgage Rates on the Rise in 2021

House of money

Have you been waiting for mortgage rates to hit rock bottom to pull the trigger on refinancing your home? Well, now is the time according to experts. Mortgage rates hit an all-time low several weeks ago and are now climbing their way back up.

Why Are Mortgages Rates Rising?

As our economy begins to bounce back from COVID-19, inflation predictions will cause mortgage rates to creep up. Optimism from the COVID-19 vaccine and stimulus have the experts predicting strong economic growth. As businesses reopen and Americans get back to work, the U.S. economy will begin to recover, bringing interest rates up with it.

Am I Too Late?

There is still time to lock in a historically low rate on a 15-, 20- or 30-year fixed-rate mortgage. For well-qualified borrowers, rates remain excellent, but you should move quickly.

Tips for Buyers

If you’re in the market for a new home, you’re likely facing a competitive seller’s market as inventory levels remain low across the country. To be successful in this market, you’ll need to have patience and an open mind. Bidding wars and listings that sell in a matter of hours can leave homebuyers feeling discouraged. For those who remain flexible and diligent, homeownership is still possible in 2021. You’ll need an experienced real estate agent and a letter of pre-approval from your lender. In the end, you can still lock in a historically low rate on your new mortgage. If you’re a first-time buyer, you may qualify for even more savings. Contact our team for information on first-time buyer and down payment assistance programs.