This year, mortgage rates have started to slowly climb above recent record-breaking lows. Many homeowners planning to move may feel like they've missed the chance to score a great rate on their next mortgage. In reality, there's still time to secure a rate far below the historic norm. Here's why.
…mortgage rates slid for a second week … but we don't expect rates to stay at this level for too long.
For sellers, getting in early optimizes odds of a quick sale at a good price before there's too much competition, but that means acting now … In this environment, sellers probably really can't go wrong, and that's especially true in the nation's hottest housing markets where homes are selling quickly and getting the greatest number of viewers online.
Despite the pause in mortgage rates recently, we expect them to increase modestly for the remainder of this year.
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. (See graph below):
While mortgage rates have trended up in recent months, they are still historically low, so relative to one year ago, housing actually is still more affordable and that's really thanks to this low mortgage rate environment we find ourselves in.