In 2020, mortgage rates hit a record low 16 times. 

These low rates helped make properties more affordable for first-time homebuyers and allowed current homeowners the chance to refinance at a lower rate. Both scenarios can save homeowners tens of thousands of dollars over the life of the loan. And saving money is always good news!  

2021 Rates

In the first week of 2021, mortgage rates hit another all-time low, with 30-year fixed-rate mortgages falling to 2.65%. For buyers who need financing, this means it’s less expensive to borrow money for a home loan than ever before. 

Since Freddie Mac began tracking weekly mortgage rates in 1971, this is the lowest rate ever recorded. This not only marks a new low, but it’s a full percentage point lower than this time last year. 

Will Low Rates Last?

Experts predict that mortgage rates will slowly increase in 2021. Nobody expects a large jump up, but instead, a gradual climb as mortgage rates fluctuate over the coming months. 

Even when mortgage rates begin to increase, they will still be on the low side, especially when you consider the full 50-year history of mortgage rates. Buyers continue to have an incredible opportunity to take out a mortgage loan at a low rate. 

Things to Keep in Mind

While mortgage rates have remained low, property values have risen. In many cases, the historic low rates still create substantial savings for buyers. 

In addition, the rate you see in the headlines may not be the exact rate you get. When applying for a mortgage, every borrower must qualify for a loan. The better your credit score, the lower rate you will be eligible for. If you aren’t sure what your credit score is, or want to know what you’ll qualify for, meet with your mortgage lender to discuss your financial situation. 

Do you have questions about buying in today’s market?