Money | Brenda Richardson
Homeowners and eager buyers have embraced low mortgage rates, as is evident in strong refinance and purchase activity in the past year’s hyper-competitive housing market.
One unexpected impact from the pandemic was the way it pushed down mortgage rates at the beginning of 2020. The average rate on a 30-year mortgage fell to a record low in March 2020 — and kept falling. Last July, rates crossed below 3% for the first time. By January 2021, they bottomed at 2.65% and have hovered around 3% since.
The Federal Reserve kicked-off the plunge when it dropped short-term rates to zero and committed to buying mortgage-backed bonds. The Fed is planning to stay the course in keeping interest rates low at least until 2023, though it may pull back on bond purchases sooner.
Learn what five industry experts predict will happen with interest rates in 2021/2022: 5 Real Estate Experts Predict Where Mortgage Rates Are Heading Next
