Could 2.9% Mortgage Rates Be Coming? I have been asking myself that too! Hi friend! Today I wanted to share an article with you that came across my inbox today..
April 22, 2020
Mortgage rates could be on a roller coaster ride over the next year, with the coming months looking to be particularly significant. In Fannie Mae’s Housing Forecast report, economists predict that the average 30-year fixed-rate mortgage for 2020 will drop to 3%, and then fall to 2.9% by 2021. Both would be all-time lows.
Many home owners with strong credit seeking to buy could see rates in the mid- or even low 2% levels, the mortgage industry predicts. “This would make buying or refinancing possible for many who can’t afford it right now,” according to The Mortgage Reports. A 2.9% mortgage rate instead of a 3.9% rate could raise homebuying power by $36,000.
The lowest average mortgage rate on record currently is 3.29%, which was set in March of this year amid COVID-19 fears, according to Freddie Mac. Mortgage rates have remained near historical lows ever since.
A year ago, mortgage rates averaged 4%. Homeowners and potential buyers can save thousands of dollars over the life of the loan from the drop in rates. For example, The Mortgage Reports uses an example of a $200,000 loan amount with a 4% versus 2.9% 30-year fixed-rate mortgage. Home buyers could potentially save $121 a month and $44,000 over the life of the loan.
“With a full year of record low mortgage rates, many homeowners would be able to refinance, reducing their monthly payments and overall loan interest,” according to The Mortgage Reports. “And prospective home buyers might be able to afford a house sooner than they thought—or buy a more expensive home than they’d be able to afford if rates were higher.”
The lower borrowing costs could help with housing affordability. Even with a slowdown likely in the housing market due to COVID-19, Fannie Mae economists are still predicting existing home prices to increase by 2.5% between 2019 and 2021.
I am crossing my fingers!! ?? In the mean time, stay safe friend!
Jordan Marie Schilleci, REALTOR®
Jo & Co. Realty Group
Check out our most popular blog posts:
- First Time Home Buyer – What You Need to Know :: http://byjoandco.com/fthb-blogpost
- The Seven People I Recommend to Every Client :: http://byjoandco.com/7people
- Most Popular New Construction in Conroe :: http://byjoandco.com/conroenew
- About Woodforest – My Most Asked for Community in 2020 :: http://byjoandco.com/aboutwoodforest
- The Most Desirable Neighborhoods to Live In in Spring and Klein ISD :: http://byjoandco.com/bestklein
- 15 Local Things to Do at Night with Kids :: http://byjoandco.com/atnight
- Where to Stay When House Hunting or Moving to The Woodlands :: http://byjoandco.com/whereto
- The Best Neighborhoods to Live in to Let Kids Be Kids :: http://byjoandco.com/kidsbekids
- Download our e-book, Moving to The Woodlands, http://byjoandco.com/downloadthewoodlandsebook
Jo & Co. Ebooks Available for Download:
- This ebook is for first time home buyers. | http://byjoandco.com/ebook1
- This ebook is for anyone moving to The Woodlands. It is updated for 2020 and shares everything you need to know. | http://byjoandco.com/ebook2
- This ebook is “The Best Neighborhoods to Let Kids Be Kids”, which is essentially a list of the most popular and favorite neighborhoods. | http://byjoandco.com/ebook3
- This ebook geographically compares Spring vs. The Woodlands. The video on this one is more informative. I really recommend watching the video. | http://byjoandco.com/ebook4
- This ebook is a silly one that is more self promotion. | http://byjoandco.com/ebook5
- This ebook is “Moving to The Woodlands”, my original ebook. | http://byjoandco.com/ebook6
- This ebook is “Texas Heroes Program Ebook”, my ebook to community hereos. | http://byjoandco.com/ebook7
- All ebooks have corresponding videos that elaborate on the topic, and you can find those here on the YouTube channel: http://byjoandco.com/youtube.
Favorite YouTube Videos:
- Moving to The Woodlands – Everything You Need to Know. | YouTube Link
- First Time Home Buyer – What You Need to Know | YouTube Link
- The Best Neighborhoods to Let Kids Be Kids | YouTube Link
- Buying in Texas? Calculate Your Monthly Mortgage | YouTube Link
- The Difference Between Spring, TX and The Woodlands | YouTube Link
- Most Desirable Neighborhoods To Live In, In Klein ISD | YouTube Link
- What to Know When Moving From California to Texas | YouTube Link