Housing Poised to Remain Strong

January 12, 2021
Housing Poised to Remain
We may see rates below 3%, perhaps for the entire year of 2021, predicts CoreLogic.

 

CoreLogic released its final three-year housing and mortgage outlook report for the year, and if numbers hold up, the data company predicts 2021 will maintain its unprecedented home sales and record low rates on home loans as the economy continues to recover. CoreLogic chief economist Frank Nothaft said that the term “unprecedented” best describes 2020. More importantly, he said the current environment may even holdup into 2023. “We may actually see rates below 3%, perhaps for the entire year of 2021,” Nothaft said. “And I wouldn’t be surprised if this low rate environment continues even beyond 2021, not necessarily at 2.7% or 2.8% once we get out to 2022, but we are expecting rates over the next three years to be far less than they’ve been in the last decade.” On average, CoreLogic predicts mortgage rates to sit closer to 3.2% over the next three years – nearly a percentage point lower than the average of the 2010-2019 decade. For families with good credit, these low rates will provide ample opportunity to buy or refinance a home. However, Nothaft expects that loans originated today, with a contract rate of 3% or lower, are more likely to have a relatively long life and lenders will not see them coming into refinance anytime soon.

Source: HousingWire