January 13, 2021
By Saeed Ghaffari
Crystal Ball Anyone?
We don’t have a crystal ball, but we can quote you from those who claim to have one and have better credentials to make the claim. At least they economists.
Greg McBride of Bankrates.com expects the rates to go up between .5% to .75% in early 2021.
Danielle Hale of realtor.com sees low rates continuing through the first half of 2021. “Making any kind of prediction for next year is difficult. But our expectation is that mortgage rates start the year roughly in line with where they are now, and they stay fairly low — right around 3% — for the first half of the year,” Hale says. She believes that in the second half of 2021, if access to a vaccine helps to improve the economy, rates could rise. “Mortgage rates could approach 3.4% by the end of the year,” she says.
Since we don’t have our own crystal ball, we make it up with smart calculators (excel) and great lenders with excellent rates signed up on moreandmorenetwork.com. Moving forward, we’ll pick arbitrary loan amounts and publish payments based on applicable interest rates obtained from lenders on our site. Reader must keep in mind, the above may not be taken as a lender quote and one must contact a lender for loan cost and APR. You may visit moreandmorenetwork.com to connect with a lender for a formal quote.
Based on the projections by our economist picks of the week, if I were in the middle of a refinance or purchase of a home, I would lock my loan just to be safe.
Above rates are courtesy of Loan America at 0 points. For APR and qualification criteria, you may connect with Loan America on moreandmorenetwork.com
Don’t forget to take advantage of our Find a Realtor page on moreandmorenetwork.com to connect with an expert in your area.
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Should I Wait For Housing To Crash Further Before I Buy A House? 3 Reasons The End of 2022 Could Be The Very Best Time To Jump In
Prices falling in expensive cities
In two-thirds of major regional housing markets — 98 out of 148 — prices continue to drop, especially in more expensive locations.
We may see expensive markets fall further, which if that happens sooner than later, would make it an excellent time to buy into an expensive market. This wouldn’t have registered as a possibility even a few months back.
It’s difficult to predict if this will happen. And if so, whether falling prices become offset by the federal interest rate hikes practically certain to arrive in the coming months.
The only way to know for sure is to wait until the latest rate hike sets in.
Meanwhile, keep in mind that — as with any investment — it’s best time to buy is usually when prices are low.
With mortgage rates dropping and fee changes in the pipeline, now may be the time to buy that home Do you like this Article ? Sign up HERE for your FREE M&M Account to receive more Real Estate related information and news and THIS article. M&M Membership...
The days of waiving contingencies such as appraisals and forgoing inspections are fading into the rearview mirror. Still, contract activity remains slightly competitive depending on your location.
At least 24% of buyers waived the inspection contingency in December 2022, according to the National Association of Realtors confidence survey, up from 16% a month prior and 19% one year ago. An additional 24% of buyers waived an appraisal contingency in December, up slightly from 16% in November and 21% a year ago.
Home inspection contingencies are particularly important because it can let you know if there’s a deal-breaking issue with the property before a purchase occurs. It can also help you negotiate repairs with the seller, which is becoming increasingly common in today’s market.
“If buyers have this short window to buy where they can get incentives to purchase, [they] would rather buy where they have an opportunity to really think about it, get an inspection, a financing contingency and not feel rushed,” Jeff Reynolds, broker at Compass and founder of UrbanCondoSpaces.com, told Yahoo Finance.