2020 was an odd year for the mortgage industry. Instead of a market crash due to the pandemic and economic turmoil, home prices and sales actually rose. At the beginning, low-interest rates, low unemployment, and rising rents drove the housing market up. As the pandemic wore on, people fleeing urban areas, or looking for more space to work from home, plus historically low interest rates kept demand for housing high. The important question is, where will interest rates go now?
Industry experts expect mortgage rates to rise in 2021. If you are not planning to buy or sell in the coming year, then hopefully you have refinanced, or will soon. We strongly encourage those thinking about selling to list now. There are still many people looking to buy, but the market will be changing. No one can predict with certainty how high mortgage interest rates will go or when, but four top experts weighing in with their thoughts and rationale, giving us a pretty good glimpse of where we are headed in 2021.