Low rates could carry the housing market after coronavirus
In Fannie Mae’s most recent Housing Forecast, the mortgage giant has some pretty bold predictions about the future of mortgage rates.
It says the average interest rate for 2020 will drop to 3% — before falling down to 2.9% in 2021.
|Fannie Mae 2020-21 Mortgage Rate Forecast|
|Current Record-Low Mortgage Rate (March 2020)||3.29% (30-yr FRM)|
|Projected Average Rate for 2020||3.0% (30-yr FRM)|
|Projected Average Rate for 2021||2.9% (30-yr FRM)|
And if the average does hit 2.9% next year, many homeowners with strong credit could see rates in the mid- or even low-2’s.
That would mean an entire year of new record low rates for U.S. homeowners.
The good news is: Those who aren’t able to lock a mortgage rate in the COVID-19 economy might still have a chance at crazy-low rates well into next year.
This would make buying or refinancing possible for many who can’t afford it right now.