Instant Reaction, Mortgage Rates, June 17th, 2021

Dated: June 18 2021

Views: 345

Mortgage rates dropped further this week, although the Fed revised upward their forecast about inflation. Specifically, the 30-year fixed mortgage rate fell to 2.93% from 2.96% the previous week. In fact, mortgage rates remain at or below 3.00% for the ninth straight week. Thus, many homebuyers can benefit from these low rates while home prices are reaching record highs.

Since 85% of buyers finance their home purchase, mortgage rates are closely monitored. With mortgage rates currently near record lows, demand for housing is very strong and outpacing housing supply. According to NAR, there are 5 offers for every home available in the market while the typical home can be sold in less than 3 weeks. Nevertheless, as the economic outlook for the United States looks brighter for the rest of the year, mortgage rates are expected to rise in the following months. What does this mean for homebuyers and how much will these higher rates change the monthly payment? Although mortgage rates will rise, they will continue to be historically low. Economic indicators and employment have strengthened but there is still a way to go. Thus, don't expect rates to rise more than 40 basis points (0.4%). NAR forecasts the 30-year fixed mortgage rate to average 3.2% at the end of the year.

See below how much the monthly payment changes when rates rise by 0.3%, 0.5% and 1.0%.

Blog author image

MaryAnne Dorio

I am originally from Long Island, NY. My husband and I moved to the Myrtle Beach area in 1999. This is home for us, many of our family members have joined us and we all feel like this is the best plac....

Latest Blog Posts

Instant Reaction: Mortgage Rates, September 9, 2021

"Mortgage rates continued to remain below 2.9% for the last nine straight weeks. Specifically, according to the finance mortgage provider Freddie Mac, the 30-year fixed mortgage rate rose slightly

Read More

Happy Hour at Home: How to Stage a Home's Bar Area

Top designers provide inspiration and tips for staging a home's bar area.A small bar area in a home can offer up some fancy design. After all, you may be celebrating happy hour more often at home

Read More

Instant Reaction: Mortgage Rates, September 2, 2021

Mortgage rates continued to remain below 2.9% for the last eight straight weeks. Specifically, according to the finance mortgage provider Freddie Mac, the 30-year fixed mortgage rate was unchanged

Read More

Hot Home Trend: Paint it Black

Black accents are giving a bolder look to home designs.Black is popping up everywhere in home design, from flooring to windows. Black feature walls also are trending. Matte black finishes have

Read More