Here’s a closer look at how our market is changing with a new administration.
As we move through 2021, many of us are aware of the struggling, pandemic-impacted economy and wondering, “What’s next?” Today I’ll talk about how this most recent change in administration could impact real estate and mortgage rates.
Right now, almost all my real estate conversations involve questions about how this new administration will affect the real estate market. After the January inauguration, the 10-year Treasury yield climbed above 1% for the first time since the pandemic began.
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You need an experienced agent by your side.
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Mortgage rates are expected to increase as the economy strengthens. The Mortgage Bankers Association predicts fixed mortgage rates to hit 3.2% on average by the third quarter of 2021 and hold steady until 2022. Homebuyers are more eager than ever to purchase homes and lock in these historically low interest rates before they increase. With current efforts to control the coronavirus, borrowers are expecting rates to increase. While there’s no guarantee that they will go up, such a trend would cause prices to stabilize and get this hot market to cool down just a little bit.
This would be a welcome sight for buyers because 40% of them are losing out to multiple offers right now. Some buyers are jumping the gun and canceling their contracts as a result. This is why you need an experienced real estate agent by your side; it’s tough out there, but we’re still helping buyers get into homes they love.
Overall, 2021 is expected to be another solid year for our market with a strong push in purchasing and refinancing. Homebuyers should expect an increase in rates, but a calmer market with more stable prices. If you’re thinking of selling this year, you should start preparing today. Give us a call and we can get a customized plan together for you.
If you have any other questions or real estate news we can assist with, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.