Here’s what you need to know about mortgage interest rates in 2021.
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Today Alex Allred from Thrive Mortgage is here to answer a few questions about interest rates and buying homes in the current real estate market.
What’s happening with interest rates?
Interest rates are increasing. Over the past five weeks, the 10-Year Treasury has been pushing those up, so as inflation rises, so do interest rates.
How much will rates rise?
From what we’re seeing, we believe rates will be 3.75% on average this year on a 30-year fixed loan. Even though rates are trending upward, they’re still historically low. In the last 30 years, we’ve only had two years where rates were below 4%.
How do climbing interest rates affect affordability?
We typically see a $15 to $25 difference for every 0.125% rate difference. With interest rates going up, your payments will grow slightly, but not dramatically enough to cause a huge difference for you.
Though interest rates are increasing, it’s still a wonderful time to buy. As the year continues, we could see that 3.75% rate emerge. So if you’re considering buying, doing so before autumn may be your greatest chance to get the best interest rates. When some people hear rates are rising, there’s automatic anxiety, but you can still feel comfortable buying and selling this year.
We’re still selling about 200 houses per year, so we would love to help you list yours and buy another if that’s your plan. Call or email us if you have any questions about interest rates, buying, or selling. We’d be glad to speak with you.