Are Interest Rates Going to Rise Next Year?

Dated: May 5 2021

Views: 25

Are Interest Rates Expected to Rise Over the Next Year?

Are Interest Rates Expected to Rise Over the Next Year? | MyKCM

So far this year, mortgage rates continue to hover around 3%, encouraging many hopeful homebuyers to enter the housing market. However, there’s a good chance rates will increase later this year and going into 2022, ultimately making it more expensive to borrow money for a home loan. Here’s a look at what several experts have to say.

Danielle Hale, Chief Economistrealtor.com:

Our long-term view for mortgage rates in 2021 is higher. As the economic outlook strengthens, thanks to progress against coronavirus and vaccines plus a dose of stimulus from the government, this pushes up expectations for economic growth . . . .”

Lawrence Yun, Chief EconomistNational Association of Realtors (NAR):

In 2021, I think rates will be similar or modestly higher . . . mortgage rates will continue to be historically favorable.”

Freddie Mac:

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.”

Below are the most recent mortgage rate forecasts from four top authorities – Freddie MacFannie Mae, the Mortgage Bankers Association (MBA), and NAR:Are Interest Rates Expected to Rise Over the Next Year? | MyKCM

Bottom Line

If you’re planning to buy a home, purchasing before mortgage interest rates rise may help you save significantly over the life of your home loan.

Blog author image

Jason Shafor

Jason is a born and raised Flagstaff native. He has over 15 years of home building experience in Northern Arizona. Jason takes the same blue collar, hard working habits he developed and implements the....

Latest Blog Posts

Buying and Selling a Home Can Benefit Our Economy and Community

How Buying or Selling a Home Benefits the Economy and Your CommunityIf you’re thinking of buying or selling a home, chances are you’re focusing on the many

Read More

If You Want the Best Advice, Work With a Real Estate Professional

Work With a Real Estate Professional if You Want the Best AdviceBecause buying or selling a home is such a big decision in our lives, the need for clear, trustworthy

Read More

Don’t Let Rising Inflation Delay Your Plans of Buying a Home

Don’t Let Rising Inflation Delay Your Homeownership Plans [INFOGRAPHIC]Some HighlightsIf recent headlines about rising inflation are making you wonder if it’s still a good time to buy,

Read More

Every Homeowner Needs To Know This One Thing About Recession

The One Thing Every Homeowner Needs To Know About a RecessionA recession does not equal a housing crisis. That’s the one thing that every homeowner today needs to know. Everywhere you look,

Read More