Don’t Assume Mortgage Rates Will Be This Low Forever


Filed under: Market Comentary


We’ve seen rates really low in recent months, and mortgage rates continue to hang in there at these low levels. But I don’t want us to get lulled into believing that these rates will be here forever.

Current Conditions Affecting Mortgage Rates

There is a lot of pressure behind the scenes that could drive rates up again. Even though we’ve heard the Fed say that rates are going to stay low until 2023 – that is different than mortgage rates. Things like inflation, signs of movement in bonds, economic problems, COVID stimulus packages, and other factors could drive rates up.

We need to watch these factors to see what happens in the industry. I don’t think we’re heading to 4% or 5% any time soon. But it’s something to keep an eye on.

Remember: these low rates are driving the market. If the economy starts getting tough, then hard assets are a safe option for your money. My favorite asset is real estate. You can put a fixed-rate mortgage against it. Even if everything else goes up, your housing is locked in.

Watch the Trends

Don’t get lulled into a false sense of security that these low rates will stay around forever. There are a lot of crazy things happening in our economy right now, and we don’t know how the future will play out. Whether you are looking to purchase or refinance, right now is a great time to make your move. The cheap financing is gold for homeowners.

I feel the same way about rental properties. Although, rentals are a little more of a risk since the government is telling renters that they don’t have to pay right now. But at least you still have a hard asset that can appreciate over time. Fixed assets are going to be the future for us in the near term.

Do You Have Questions?

If you’re ready to buy a home or you want to learn more about refinancing options, then I’m here to help. Reach out and we’ll talk about your personalized solutions for financing.


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