Mortgage Report / Crystal Ball Anyone? by: Saeed Ghaffari

Mortgage Report / Crystal Ball Anyone? by: Saeed Ghaffari

January 20, 2021


By Saeed Ghaffari

Saeed Ghaffari

Saeed is the founder of Money, Real Estate & More. With over 30 years of experience as a lender, investor and a real estate professional, he provides free consulting in these fields. To connect with Saeed, sign up for free / log in on

Saeed Ghaffari

Get Lucky today! Apply for a loan through our Find a Lender Page on or reach out to Saeed to be connected with a lenderand if the loan amount you obtain is within $3000 of the loans on this table, More & More will credit you $300 towards your closing costs.

Mortgage Report

Above rates are courtesy of Loan America at 0 points. For APR and qualification criteria, you may connect with Loan America on

 Crystal Ball Anyone?

Who knows how the mortgage rates will be impacted by new administration? Only the ones with a crystal ball. And that’s not us. We may not have the crystal ball, but we can pick and choose and bring you relevant speculations and predictions from around the internet, so you don’t have to get lost in the overflow of information on the cyberspace.  Below is an article we found interesting on 

Between a down payment, closing costs, and monthly mortgage payments, the costs of owning a home can easily add up. One of the most talked-about Biden proposals involves the introduction of a $15,000 first-time homebuyer tax credit.

The credit would be aimed at helping young, first-time homebuyers and minorities. Qualified applicants could claim up to a $15,000 tax credit, similar to the $7,500 first-time homebuyer credit established under the Obama administration through the Housing and Economic Recovery Act.

The Mortgage Bankers Association forecasts mortgage originations will total $2.49 trillion in 2021, down from the $3.18 trillion estimated for 2020. Low mortgage interest rates were a significant driver of demand for real estate in 2020, even as home values increased 7.5%.

Walkup said the pandemic had a whipsaw effect on prices in many locations, as fear and uncertainty spiked. As buyer confidence gradually returned, more Americans entered the market. Looking ahead to 2021, it’s important to be mindful of the market’s temperature.

“Buyers should be aware that they’re in an increasingly competitive environment,” said Walkup. Zillow forecasts a 10.5% increase in home values next year while buyers may be faced with a narrower selection of properties. According to, national home inventory in 2020 declined by 39.2% over 2019’s numbers.

Refinance rates followed home purchase mortgage rates, achieving near historic low levels in 2020. Demand for mortgage refinance loans jumped 105% in 2020, as homeowners scrambled to take advantage of low mortgage rates.

Part of the demand for mortgage refinancing could also be attributed to the adverse market refinance fee, which took effect December 1. The 0.5% fee, which applies to new refinance loans, is expected to cost homeowners $500 for every $100,000 borrowed while helping Fannie Mae and Freddie Mac offset pandemic-related financial losses.

The Biden administration hasn’t said specifically how the adverse market refinance fee would be handled, as other housing issues may take precedence. That includes the millions of homeowners who have fallen behind on mortgage payments as a result of the coronavirus pandemic.

Reversing the fee may be easier said than done, considering how it may impact Fannie Mae and Freddie Mac, as well as the mortgage market in general. Walkup said that similar to taxes, measures like the adverse market fee are easy to start but hard to stop. 

If you own a home and are wondering whether it’s a good time to refinance, it’s helpful to compare rates and run the numbers.  Reach out to us on and us connect you with the right lender based on your needs and qualification.


Don’t forget to take advantage of our Find a Realtor page on 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.

‘Deals to be had:’ Homebuyers Should Ask For These Incentives While They Have The Upper Hand

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, told Yahoo Finance.