Interest rates are still at historic lows. Is now the best time to buy your new home or upgrade to a bigger or newer home? The good news is that interest rates are not expected to make any substantial increases into early 2021. With rates so low, it is not likely that the interest rates will drop much lower to dramatically affect your monthly payment, as they have over the last six months during the Coronavirus pandemic.
Many experts agree that the interest rates will remain relatively low as we begin 2021, but also feel the rates will remain flat for the most part and begin to increase as the U.S. economy begins to recover. So, this will be something to continually watch over the next few months, as you will want to make sure to lock in on an interest before it begins to increase.
Reasons for the interest rates to remain level and potentially increase include, the better understanding, control and treatments of the coronavirus. The impact of the coronavirus is the single most impacting element effecting mortgage interest rates. In addition, once the U.S. elections are behind us, this will impact more stability in the economy and mortgage interest rates could begin to increase.
With interest rates at all-time lows and the possibility of interest rates increasing, it is a great time to buy your new home now. Once the interest rates start to go up, even slowly, it is likely that more people will jump into the buying market, creating competition for the home you want to buy, which will increase the price of the home and thus eliminates any savings on a small interest rate decrease.
For more information and help understanding your buying and mortgage options, reach out to us and we can help answer any questions you may have.