Will Low Mortgage Rates Continue through 2021?

With mortgage interest rates hitting record lows so many times recently, some are wondering if we’ll see low rates continue throughout 2021, or if they’ll start to rise. Recently, Freddie Mac released their quarterly forecast, noting:

“The average 30-year fixed-rate mortgage hit a record low over a dozen times in 2020 and the low interest rate environment is projected to continue through this year. We expect interest rates to average below 3% through the end of 2021. While this is a modest rise from 2020 averages, the recent vote by the Federal Reserve to keep interest rates anchored near zero should keep rates low.”

As shown in the graph below, Freddie Mac is projecting low rates going forward with a modest rise that’s expected to continue through 2022.

Freddie Mac isn’t the only authority forecasting low rates with a slight rise. Fannie Mae, The Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR) also anticipate low rates with a small increase as 2021 continues on. Here’s the quarterly breakdown of their projections and how they’re expected to play out over the next year:

It’s important to note that, while a small change in interest rates can have a substantial impact on monthly mortgage payments, these rates are still incredibly low compared to where they were just a couple of years ago.

What does this mean for buyers?

Low mortgage rates are creating an outstanding opportunity for current homebuyers to get more for their money while staying within their budget. As the economy gets stronger and we recover from the challenges of 2020, it’s natural for rates to potentially rise in response to a healthier economy. Mark Fleming, Chief Economist at First American, reminds us:

“Rising interest rates reduce house-buying power and affordability, but are often a sign of a strong economy, which increases home buyer demand. By any historic standard, today’s mortgage rates remain historically low and will continue to boost house-buying power and keep purchase demand robust.”

With low rates fueling activity among hopeful buyers, there are a lot of people who are highly motivated and looking for homes to purchase right now. In this environment, it can be challenging to find a home to buy, so a local real estate agent will be key to your success if you’re thinking of buying too. Working with a trusted real estate professional to navigate the process while rates are in your favor might be the best move you can make.

Bottom Line

If you’re ready to buy a home, it may be wise to make your move before mortgage rates begin to rise. Contact a local real estate professional to discuss how today’s low rates can create more opportunities for you this year.

Source: Keeping Current Matters | The KCM Crew 02192021

52 DAISEY DR Atoka, TN 38004

Property Site: http://tour.remax-tennessee.com/home/MVNWGS/52-DAISEY-DR-Atoka-TN-10093515

Super Cute 3BR/2BA Home in Quiet Atoka Neighborhood~Large Great Room w/Fireplace~Spacious Eat-In Kitchen w/Plenty of Cabinet Space + Pantry~Great Master Bedroom w/En-Suite Bath~Two Additional Bedrooms + Full Bath~Laundry Closet in Hallway~Screened Porch + Large Deck w/Fire Pit~Huge Fenced-In Backyard~AND MORE!!

Bedrooms: 3

Bathrooms: 2

Square feet: 1,200

Price: $179,000

For more information about this property, please contact Jennifer Carstensen at 901-685-6000 or jennifer@livelovememphis.com. You can also text 6696422 to 67299 (Message and Data Rates May Apply, see terms and privacy policy).

See more listings at: jcarstensen.remax-tennessee.com

MLS ID: 10093515

https://www.facebook.com/jensellsmemphis https://twitter.com/livelovememphis https://www.youtube.com/c/jennifercarstensenmemphisrealestate

6014 MILTON WILSON BLVD Arlington, TN 38002

Property Site: http://tour.remax-tennessee.com/home/49NKD3/6014-MILTON-WILSON-BLVD-Arlington-TN-10093137

Gorgeous 4BR/3BA Home in Sought After Arlington Neighborhood~Entry Hall Welcomes You In~Formal Dining Room w/Lots of Natural Light~Huge Great Room w/Vaulted Ceilings~Beautiful, Open Eat-In Kitchen w/SS Appliances, Granite Counters + Tons of Cabinet Space & Hearth Room w/Fireplace~Master Bedroom Suite Down w/Luxurious Bath + Custom Walk-In Closet~2nd BR + Full Bath + Laundry Room Also Down~2 BRs + Full BA + Bonus Room (or 5th BR) Up~Relaxing Backyard Overlooks Preserve Area~AND MORE!!

Bedrooms: 4

Bathrooms: 3

Square feet: 3,000

Price: $390,000

For more information about this property, please contact Jennifer Carstensen at 901-685-6000 or jennifer@livelovememphis.com. You can also text 6685802 to 67299 (Message and Data Rates May Apply, see terms and privacy policy).

See more listings at: jcarstensen.remax-tennessee.com

MLS ID: 10093137

https://www.facebook.com/jensellsmemphis https://twitter.com/livelovememphis https://www.youtube.com/c/jennifercarstensenmemphisrealestate

Why Owning a Home Is a Powerful Financial Decision

 

In today’s housing market, there are clear financial benefits to owning a home: increasing equity, the chance to build your net worth, and appreciating home values, just to name a few. If you’re a renter, it’s never too early to think about how homeownership can propel you toward a stronger future. Here’s a dive into three often-overlooked financial benefits of homeownership and how preparing for them now can steer you in the direction of greater financial security and savings.

1. You Won’t Always Have a Monthly Housing Payment

Personal finance advisor Dave Ramsey explains:

“Every payment brings you closer to owning the house. When you pay your rent, that money is spent. Gone. Bye. Not returning. But when you pay your mortgage, you work toward full ownership.”

As a homeowner, you can eventually eliminate the monthly payment you make on your house. That’s a huge win and a big factor in how homeownership can drive stability and savings in your life. As soon as you buy a home, your monthly housing costs begin to work for you as forced savings in the form of equity. When you build equity and grow your net worth, you can continue to reinvest those savings into your future, maybe even by buying that next dream home. The possibilities are truly endless.

2. Homeownership Is a Tax Break

One thing people who have never owned a home don’t always think about are the tax advantages of homeownership. The same article states:

“You have tax advantages. Many of the costs of owning a home—like property taxes—are tax deductible. And if you’re paying off a mortgage, you’ll get to count your mortgage interest as a deduction when you file your tax return.”

Whether you’re living in your first home or your fifth, it’s a huge financial advantage to have some tax relief tied to the interest you pay each year. It’s one thing you definitely don’t get when you’re renting. Be sure to work with a tax professional to get the best possible benefits on your annual return.

3. Monthly Housing Costs Are Predictable

A third benefit is the fact that monthly costs start to become more predictable with homeownership, something that doesn’t happen if you’re renting. Ramsey also notes:

“Rent rates will go up. Even if you found a killer deal in a hot area, inflation, competition, and rising property values will cause your rent to go up year after year.”

With a mortgage, you can keep your monthly housing costs relatively steady and predictable. Your monthly costs are most likely based on a fixed-rate mortgage, which allows you to budget your finances over a longer period of time. Rental prices have been skyrocketing since 2012, and with today’s low mortgage rates, it’s a great time to get more for your money when purchasing a home. If you want to lock-in your monthly payment at a low rate and have a solid understanding of what you’re going to spend in your mortgage payment each month, buying a home may be your best bet.

Bottom Line

If you’re ready to start feeling the benefits of stability, savings, and predictability that come with owning a home, reach out to a local real estate professional to determine if buying sooner rather than later is right for you.

Source: Keeping Current Matters | The KCM Crew 02052021

8822 ALDERSHOT DR Germantown, TN 38139

Property Site: http://tour.remax-tennessee.com/home/MKTFNN/8822-ALDERSHOT-DR-Germantown-TN-10092918

Gorgeous 4BR/2.5BA Home Walking Distance to Dogwood Elementary w/Wrap Around Porch~Formal Dining Room w/Built-Ins + Formal Living Room w/Lots of Natural Light~Huge Great Room w/Fireplace & Wet Bar~Spacious Kitchen w/Tons of Cabinet Space, Granite Counters + SS Appliances~Separate Breakfast Room or Office Off Kitchen~All Bedrooms Up~Huge Master Bedroom w/Luxury En-Suite Bath + Walk-In Closet~Three Additional BRs w/Walk-In Closets + Full BA Up~Amazing Screened-In Porch & In-Ground Pool~AND MORE!

Bedrooms: 4

Bathrooms: 3

Square feet: 2,800

Price: $400,000

For more information about this property, please contact Jennifer Carstensen at 901-685-6000 or jennifer@livelovememphis.com. You can also text 6680416 to 67299 (Message and Data Rates May Apply, see terms and privacy policy).

See more listings at: jcarstensen.remax-tennessee.com

MLS ID: 10092918

https://www.facebook.com/jensellsmemphis https://twitter.com/livelovememphis https://www.youtube.com/c/jennifercarstensenmemphisrealestate

30 MEADOW TRAIL LN Oakland, TN 38060

Property Site: http://tour.remax-tennessee.com/home/L8FHMG/30-MEADOW-TRAIL-LN-Oakland-TN-10092840

Gorgeous 5BR/3BA Home on 1 Acre Lot~Entry Hall Welcomes You Home~Formal Dining Room w/Lots of Natural Light~Large Great Room w/Gas Fireplace & Vaulted Ceilings~Beautiful Kitchen w/Tons of Cabinets, Granite Counter Tops, SS Appliances, Pantry & Breakfast Bar + Separate Breakfast Area~Master Bedroom Down w/Sitting Area & 2 Walk-In Closets + En-Suite Luxury Bath w/2 Vanities, Jacuzzi Tub & Separate Shower~2nd BR + Full BA + Laundry Room Also Down~3 BRs + Full BA Up~Covered Patio w/Fan~AND MORE!!

Bedrooms: 5

Bathrooms: 3

Square feet: 2,600

Price: $300,000

For more information about this property, please contact Jennifer Carstensen at 901-685-6000 or jennifer@livelovememphis.com. You can also text 6677966 to 67299 (Message and Data Rates May Apply, see terms and privacy policy).

See more listings at: jcarstensen.remax-tennessee.com

MLS ID: 10092840

https://www.facebook.com/jensellsmemphis https://twitter.com/livelovememphis https://www.youtube.com/c/jennifercarstensenmemphisrealestate

3433 STONE ST Memphis, TN 38118

Property Site: http://tour.remax-tennessee.com/home/7ZB3WW/3433-STONE-ST-Memphis-TN-10092803

Large 4BR/2.5BA Brick Split Level Home~Huge Living Room + Dining Room w/Lots of Natural Light~Spacious Kitchen w/Plenty of Cabinet & Countertop Space~Great Master Bedroom on Main Level w/En-Suite Half Bath~Two Additional Bedrooms + Full Bath on Main Level~Large Great Room w/Fireplace + Wet Bar on Lower Level~Oversized 4th Bedroom or Bonus Room + Full Bath + Washer/Dryer Connections Also Down~Hardwood Floors on Main Level~AND MORE!!

Bedrooms: 4

Bathrooms: 3

Square feet: 2,200

Price: $115,000

For more information about this property, please contact Jennifer Carstensen at 901-685-6000 or jennifer@livelovememphis.com. You can also text 6677960 to 67299 (Message and Data Rates May Apply, see terms and privacy policy).

See more listings at: jcarstensen.remax-tennessee.com

MLS ID: 10092803

https://www.facebook.com/jensellsmemphis https://twitter.com/livelovememphis https://www.youtube.com/c/jennifercarstensenmemphisrealestate