If you're eagerly waiting for the mortgage rates we saw in 2021, which sank to under 3% according to Freddie Mac, I have some news that might disappoint you. Almost every economist out there is predicting that the 3% mortgage rate is probably gone for good. You might be wondering why this is the case. Well, it all comes down to a unique and unforeseen set of circumstances that began with the global pandemic in 2020. Thankfully, pandemics are rare, and we can't rely on such events to bring about historically low rates.
While there are some forecasters who predict that rates will decline over the next 12 months, they don't see rates dropping below 5% anytime soon. To put things into perspective, one MLS chief economist aptly described the sentiments of many would-be home buyers:
"People are still working through their five stages of grief on this mortgage rate stuff. And I think you have to reach the stage of acceptance... rates aren't going to come down to where we were back during 2020 and 2021."
So, what does this mean for you as a potential home buyer? One key takeaway from these forecasts is that while mortgage rates might drop a little, holding out for a return to the ultra-low rates of the recent past may only lead to frustration. Imagine waiting and hoping for rates to plummet while you're stuck in a property that isn't quite right for you. It's time to face the reality of the current rate atmosphere and consider taking the leap into homeownership.
Yes, rates may be higher than they were a couple of years ago, but they are still historically low when you look at the bigger picture. Now could be the ideal time to buy that next home and start enjoying the truly unique rewards of homeownership. Owning a home provides stability, the freedom to personalize your space, and the potential for long-term financial growth.
If you're ready to explore your options and make a move, I'm here to help. As a seasoned realtor with expertise in the current market, I can guide you through the process and help you find a property that suits your needs and budget. Together, we can navigate the current rate environment and find a mortgage that aligns with your financial goals.
Don't let the dream of homeownership slip away while waiting for rates that may never return. Contact me today, and let's review your options. Your future home is waiting, and I'm here to make your homeownership dreams a reality.