Will the 3% Loan Rate Ever Return?
If you’ve decided to postpone buying a home because of the current interest rate, it’s possible that you could wait longer than you planned.
If you’re waiting for the rates we saw in 2021 (which sank to under 3%, according to Freddie Mac), you may never buy. Here’s why.
Almost every economist has predicted that the 3% mortgage rate will probably never return. This is because the mega-low rates were triggered by a unique, unforeseen set of circumstances that began with a global pandemic in 2020. Thankfully, pandemics are rare.
While some forecasters predict that rates will decline over the next 12 months, they don’t see rates dropping below 5% any time soon.
“People are still working through their five stages of grief on this mortgage rate stuff,” says Lisa Sturtevant, chief economist for Bright MLS, the real estate listing service for the mid-Atlantic region.
One takeaway from these forecasts: Sure, mortgage rates might drop a little, but this may only end in frustration — especially if you’re stuck in a property that isn’t right for you. Perhaps it’s time to accept the current rate atmosphere, buy that next home, and enjoy the truly unique rewards of home ownership.
Ready to get started? Contact us and we’ll review your options.