As we approach 2021 with hope, it helps to start planning your next steps. The new year is a chance to start fresh and make exciting changes beyond your comfort zone.
These changes could include eating healthier, being bolder at your work, or going big and finding a new house where you can settle your roots. Moving is a chance to begin a new chapter in your life, so why not now rather than later?
Before you hit the Alpharetta real estate market, you’ll want to follow mortgage rate trends to decide your budgeting. After this past year, what do the conditions of the Atlanta real estate market look like? Are mortgage rates really on the rise in 2021?
Here is what you need to know about next year’s mortgage rates (for 30 year fixed rate mortgages):
Rates Were At a Record Low in 2020
This past year, mortgage rates were at the lowest they’ve ever been, with the record lowest in September. These low rates led to boosted market sales and home purchases. While the economic downturn impacted many, the low rates made house ownership more accessible, which led to a booming market.
Reliable economic analysts are sharing conflicting opinions of what the market will look like over the next few years. For example, Fannie Mae expects that rates will stay low between 2.8%-2.8% from 2021-2022, which is more favorable for buyers.
On the other hand, the Mortgage Bankers Association anticipates rising rates between 3.3%-3.6% over the next few years.
The average expected mortgage rate between these predictors and other sources will be around 3.03%, increasing from this year’s rates.
Rates around 3% Are Favorable
While rising rates may cause concern for future buyers, the numbers still look suitable for them overall. They may not be at record lows anymore, but they make payments more manageable for home buyers on a budget.
However, it’s important to remember that a low rate does not necessarily mean a low price for a house. These will make your mortgage payments easier as long as you can afford the actual sum that you’ve agreed to with the house seller. When planning your budgeting, remember to extend your search beyond just rate trends and look at home pricing averages on the Alpharetta real estate market.
Our AlpharettaZen Team Is Here to Help
For helpful advice and insights on market trends for Alpharetta real estate, we are at your service. Our team of experts will work with you to find the next home that’s perfect for you and will be within your budget. Contact us today so you can start fresh in your next Alpharetta home.