Mortgage price forecast for August 2021: Will charges lastly begin going up? |
Prices for fall 2021 and beyond
Industry experts predict some sharp fluctuations in mortgage rates between now and the end of the year. Fannie Mae predicts the 30-year fixed-rate mortgage will average 3 percent by the end of 2021, which is close to Freddie Mac’s forecast of 3.1 percent. The Mortgage Bankers Association predicts an average interest rate of 3.4% for the full year when 2021 ends.
“Slightly higher mortgage rates are the most likely outcome, especially as the persistence of inflation becomes a bigger problem. But the good news is that mortgage rates averaging as low as 3 percent and below 3 percent will still prevail for those shopping in the area, ”says McBride.
If we see sustained inflation, the Fed could be forced to withdraw its asset purchase programs and interest rates could rise faster than expected, warns Biskobing.
“However, I think there’s a good chance the inflation we’ve seen is closely related to supply chain issues related to COVID shutdowns. I think these problems should resolve themselves in the next few months. Still, I think the 30-year mortgage rate will trend up and can approach 3.5% by the end of the year, ”he says.
This is exactly the New Year’s number that Evangelou also imagines.
“While jobs are falling sharply, we are also seeing many university campuses preparing to welcome students again this fall. Millions of students will soon be looking for a home, which will further increase the demand for rental apartments, ”she says. “Remember, rents are an integral part of the inflation rate and account for more than 40 percent of core inflation.”