Favorable mortgage rates have helped the housing market handle affordability challenges, low inventory, and coronavirus. With record low rates counteracting continuing price increases, demand from home buyers has stayed strong and the market has been resilient. And fortunately, according to a recent forecast from Freddie Mac, low rates aren’t going anywhere any time soon.
“One of the main drivers of the strong housing recovery is historically low mortgage interest rates,” the forecast reads. “Given the weakness in the broader economy, the Federal Reserve’s signal that its policy rate will remain low until inflation picks up, and no signs of inflation, we forecast mortgage rates to remain flat over the next year.”
In fact, Freddie Mac says rates should continue to hover just above record lows through the end of 2021. That’s good news for anyone interested in buying a home any time soon. It’s also encouraging for current homeowners who may be able to benefit from refinancing. (source)
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