Seems like each time that rates hit a new record low this year, we turn around and see mortgage rates still dropping even further. But will that continue?
Now that the election is over and positive news of a coronavirus vaccine has been announced, we may see rates start to go back up … a bit. However, rates still are lower than they’ve been in a long time and are about a percentage point lower than last year at this time.
Mortgage Rates Now
Freddie Mac reports these home mortgage numbers:
- 30-year fixed-rate mortgage averaged 2.84 percent with an average 0.7 point for the week ending November 12, 2020, up from last week when it averaged 2.78 percent. A year ago at this time, the 30-year FRM averaged 3.75 percent.
- 15-year fixed-rate mortgage averaged 2.34 percent with an average 0.6 point, up from last week when it averaged 2.32 percent. A year ago at this time, the 15-year FRM averaged 3.20 percent.
Mortgage Rates Projected for 2021
Bankrate says “the possibility of rates falling to 2.5 percent or lower has faded as the U.S. economy has rebounded.”
Yet even with the slight rate increases we’re seeing right now, The Mortgage Reports says most nationwide housing authorities project mortgage rates to remain in the 2.8%-3.3% range into 2021.
What This Means for You
Low mortgage rates mean you can get “more house” for your money right now. For example, let’s say you want to pay about $2,000 a month for your mortgage payment. Let’s look at two options:
- With a 30-year mortgage at a rate of 2.84% and a 20% down payment, you could have a $500,000 house for a monthly mortgage payment of $2,047.
- With a 30-year mortgage rate of 3.3% and the same 20% down payment, you would be able to have a $475,000 house for a monthly mortgage payment of $2,043.
So, your $2,000 monthly mortgage payment can get you a $500,000 home while rates are at 2.84%, while it would get you $25,000 less of a home — $475,000 — with a 3.3% rate.
Ready to Take Advantage of Our Current Low Rates?
If you’re ready to lock in our current low mortgage rates, the Foxen Realty agents are here to help you. Get started by calling us at 559-490-0207 today.