What is Your Outlook for Mortgage Interest Rates in 2021?

[DeWitt Gibson]

As a Mortgage Broker, I hear a lot of "expert" opinions about where mortgage interest rates are heading. 

I am more curious as to what the word is out there amongst the folks actually buying and selling real estate day in and day out?

Where do you see interest rates headed over the course of 2021? Rising? Falling? Holding Steady? 

Does your opinion make you more or less likely to buy Real Estate in 2021? Why?

[Joe Splitrock]

Originally posted by @DeWitt Gibson:

As a Mortgage Broker, I hear a lot of "expert" opinions about where mortgage interest rates are heading. 

I am more curious as to what the word is out there amongst the folks actually buying and selling real estate day in and day out?

Where do you see interest rates headed over the course of 2021? Rising? Falling? Holding Steady? 

Does your opinion make you more or less likely to buy Real Estate in 2021? Why?

 The rates are low because the Fed is buying an unlimited amount of mortgage backed securities. Mortgage rates go down when there are more buyers of MBS and up when there are less. Since the Fed has unlimited funds and will buy unlimited MBS, that pushes rates down. The Fed has stated they will not change policy until we are on solid ground with economic recovery. That means low rates for the rest of 2021, although probably not record low.

I am not necessarily an expert, but the Fed has openly stated their intent.