“The combination of rising mortgage rates and increasing home prices will accelerate the decline in affordability and further squeeze potential home buyers during the spring home sales season,” says Sam Khater, Freddie Mac’s chief economist.
The average rate for the 30-year fixed-rate mortgage fell to 2.65 percent for the week ending January 7, the lowest number ever recorded by Freddie Mac. The 30-year fixed-rate mortgage was 3.64 percent a year ago, which means it’s dropped nearly an entire percentage point year over year.
The buzz around ERA Shields, the real estate company where I hang my license, is that the Blue Wave (democratic senate) and new White House leadership may impact mortgage rates. Typically this means a rise in rates.
There are two forces which will determine where markets go in the coming week. One is the perception regarding the pandemic. The other is the perception of the new D.C. It appears that the Democrats will gain control of the Senate. Markets thrive on divided government. With one party in control of D.C., businesses will face more legislative and regulatory barriers.
Dick Lepre, Senior loan officer, RPM Mortgage, Inc.
Home prices are predicted to rise by 8% in 2021, but rates are still incredibly low at this time. The clock is ticking. Before the predicted 8% increase in home prices is realized and interest rates go up, call me today to put you on real-time MLS email alerts for your new home.