Will The 3% Loan Rate Ever Return?

If you've decided to postpone buying a home because of the current interest rates, it's possible that you could wait longer than you'd planned.

You may never buy if you're waiting for the rates we saw in 2021 (which sank to under 3%, according to Freddie Mac). Here's why.

Almost every economist has predicted that the 3% mortgage rate will probably never return. This is because the mega-low rates were triggered by a unique, unforeseen set of circumstances that began with a global pandemic in 2020. Thankfully, pandemics are rare.

While some forecasters predict that rates will decline over the next 12 months, they don't see rates dropping below 5% any time soon. One MLS chief economist described the feelings of many would-be home buyers:

"People are still working through their five stages of grief on this mortgage rate stuff. And I think you have to reach the stage of acceptance ... rates aren't going to come down to where we were back during 2020 and 2021."

One takeaway from these forecasts: Sure, mortgage rates might drop a little, but this may only end in frustration — especially if you're stuck in a property that isn't right for you. Perhaps it's time to accept the current rate atmosphere, buy that next home, and enjoy the truly unique rewards of home ownership.

Ready to get started? Contact us, and we'll review your options.

Source: nerdwallet.com

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.