Mortgage rates have recently started to increase again, after hovering at or just above record lows for months. Many expect that they’ll climb even higher as economist predict a booming economy. Also affecting expectations are the rising vaccination rates and lifting of COVID-related restrictions. But despite those expectations, Fannie Mae’s Economic and Strategic Research Group says it shouldn’t be a major concern.
Rates to Remain Low
“At the moment, economists’ eyes are on interest rates because of the size of the recent increases to Treasury and mortgage rates and the short time period over which those changes occurred,” economist Doug Duncan said. “Perspective is helpful here: While we forecast some continued upward movement, mortgage rates remain historically low, as they are still 0.8 percentage points below the 2019 average.” Current rates are still significantly lower than last year’s rates. In other words, recent increases in mortgage rates have not changed the fact that mortgage rates are still low. Fannie Mae expects any upcoming rate increases won’t affect housing activity in the near term, though they do expect refinance demand to dip. Follow the link for more information.
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