January 30, 2021 Mortgage Rate Forecast
by Lawrence Yun, Chief Economist National Association of Realtor
Mortgage rates across the board are at historic lows. Everything, from 1-year adjustable rates to 30-year fixed rates, is lower now than it ever has been in most people’s experience.
However, there are gaps to consider. The 15-year mortgage is at 3.2 percent while the 30-year can be obtained at 3.9 percent, a difference of 70 basis points. The 5-year hybrid ARM is 2.8 percent. The 1-year ARM is of no value since it is also being quoted at 2.8 percent. These rates are based on a Freddie Mac survey of lenders.
The 5-year hybrid option is best for those who are fairly sure they will be moving within the next 5 years. On a $200,000 mortgage, the 5-year hybrid monthly payment will be $822 with the remaining loan balance at $177,200 in 5 years. By contrast, [Read more…]