This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based realtor and Arlington resident. Please submit your questions to him via email for response in future columns. Enjoy!
Question: Do you expect mortgage rates to increase in 2021?
Answer: Happy new year everybody! Historically low mortgage rates in 2020 were one of a few factors that drove real estate prices up across the country (except in the condo market). This time last year, the Mortgage Bankers Association and Freddie Mac each predicted that rates would remain near 2019 levels through 2021, with an average 30-year fixed rate hovering around 3.7% to 3.8% through that period.
As it turns out, rates averaged about a full percent less than those projections. Rates fell consistently throughout the year, except for a brief but sharp increase in mid-March when markets went crazy with the first news of COVID-related shutdowns, until the Fed stepped in with liquidity.
Below are some charts from Freddie Mac showing average mortgage rates over the last 50, 10 and one year.
Average Mortgage Rates Since 1971
Average Mortgage Rates Since 2010
Average Mortgage Rates in 2020
Rates in 2021+
The Mortgage Bankers Association and Freddie Mac each predict that 30-year fixed rates will increase slightly in 2021 and hover around 3% to 3.2% in 2021. Beyond 2021, the Mortgage Bankers Association sees rates averaging 3.6% in 2022 and 4.1% in 2023.
An increase to 4% or higher mortgage rates will likely cause the rapid appreciation we’ve seen over the last couple of years to slow down, but I don’t think it will lead to a pull-back in prices unless it is combined with a migration from the DC Metro due to major changes in telework policy.
If you’re considering purchasing in 2021, I wrote a column in 2019 about my favorite mortgage programs that you might find helpful. If there’s anything I can do to help you prepare for a purchase, don’t hesitate to email me at [email protected].
If you’d like a question answered in my weekly column or to set-up an in-person meeting to discuss local Real Estate, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at www.EliResidential.com. Call me directly at 703-539-2529.
Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with RLAH Real Estate, 4040 N Fairfax Dr #10C Arlington VA 22203. 703-390-9460.
Good Friday evening, Arlington. Let’s take a look back at today’s stories and a look forward to tomorrow’s event calendar. 🕗 News recap The following articles were published earlier today…
Spend the first Sunday of March tasting a great wine selection at Arrowine’s Super Sunday Tasting!
Workers lowered signage today (Friday) from the now-former Giant supermarket in the Lyon Village Shopping Center. Several passersby watched with interest as the team unscrewed the letters G-I-A-N-T from the…
New properties just listed in Arlington include a 3 BD/3 BA home with an expanded kitchen, fireplace and two lower levels.
March General Membership Meeting
NAACP Arlington Branch is celebrating Women’s History Month with a virtual public safety and Virginia legislative update. Our speakers are Commonwealth’s Attorney Parisa Dehghani-Tafti and Delegate Adele McClure.
Virginia House of Delegates, 2nd District in Arlington
Early Years Preschool is a small non-profit preschool and parents day out program that has served local families since 1992. Early Years Preschool is located in the Cherrydale neighborhood at 3701 Lorcom Lane.
Early Years Preschool offers part-time programs for young children between 12 months – 5 years old. Early Years also offers a 6 week summer program! The school day is 9:30-2:30, with the option of morning extended day offered at 9am. Families have the flexibility of registering for 1-3 days/week in their parent’s day out program (12 months- 2 year olds) and 2-5 days/week for their preschool program (3-5 year olds).
Early Years’ teachers provide a nurturing environment that promotes the development of a child’s emotional, social, cognitive, and physical skills. Creative and stimulating theme-based activities allow each child to develop and learn at his or her own pace through exploration and play.
Learn more about Early Years Preschool by contacting the admissions team at [email protected] or by visiting their website at http://www.earlyyearspreschool.org
Dedicated to the notion that fans of the Smiths and Morrissey want to hear some of the greatest music ever written in a true live concert setting, Caligula Blushed delivers an authentic rendition of Smiths/Morrissey songs, with each performance based