In 2020, buyers got a big boost in the housing market as mortgage rates dropped throughout the year, which is good news for the PCB Real Estate Market.
Will Mortgage Rates Remain Low Next Year?
In 2020, buyers got a big boost in the housing market as mortgage rates dropped throughout the year. According to Freddie Mac, rates hit all-time lows 12 times this year, dipping below 3% for the first time. Making buying a home or condo along the Panhandle’s Emerald Coast more and more attractive as the year progressed (See graph below):
The Challenge With Waiting.
The challenge with waiting is that you can easily miss this optimal window of time and then end up paying more in the long run. Not to mention, you may miss out on the perfect Emerald Coast beach home. Last week, mortgage rates ticked up slightly. Sam Khater, Chief Economist at Freddie Mac, explains:
“Mortgage rates jumped this week as a result of positive news about a COVID-19 vaccine. Despite this rise, mortgage rates remain about a percentage point below a year ago.”
Mortgage Rates Are Still Lower Today Than They Were One Year Ago.
As the economy continues to get stronger and the pandemic is resolved, there’s an excellent chance that interest rates will rise again. Several top institutions in the real estate industry are projecting an increase in rates over the next four quarters (See chart below):
If you’re planning to wait until next year or later, Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), forecasts mortgage rates will begin to rise steadily. As a buyer, you need to decide if waiting makes financial sense for you.
If you’re planning to buy a home or condo along the Emerald Coast, don’t wait. Take advantage of today’s low rates. Now is the time to do so. Please don’t assume they’re going to stay this low forever.
To learn more, reach out to the Life’s A Beach Real Estate team. We are here to help you find your piece of paradise. We have agents in Panama City Beach and surrounding areas. As well as the Destin San Destin 30A area.