Mortgage interest rates forecast next 90 days
We expect mortgage rates to continue to hover near or just below 3% for the next few weeks. Over the next 90 days, a modest overall increase seems likely.
Based on expert mortgage rate predictions and forecasts from housing authorities, 30-year mortgage rates could go as high as 3.17% within the next 90 days.
Mortgage rate predictions for late 2021
Experts are split on their mortgage rate predictions for fall and winter of 2021.
Fannie Mae and the National Association of Home Builders see average 30-year rates staying below 3% through Q4 2021, while agencies like Freddie Mac and the Mortgage Bankers Association predict 30-year rates as high as 3.3 to 3.4% by the end of the year.
In any case, mortgage interest rates should stay in the low- to mid-3% range throughout the second half of 2021. No one is expecting a dramatic spike any time soon.
Housing Authority | 30-Yr Mortgage Rate Prediction (Q4 2021) |
Fannie Mae | 2.90% |
National Assoc. of Home Builders | 2.94% |
National Association of Realtors | 3.20% |
Wells Fargo | 3.25% |
Mortgage Bankers Association | 3.30% |
Freddie Mac | 3.40% |
Average Prediction | 3.17% |
Find your lowest interest rate (Sep 17th, 2021)
What could cause mortgage rates to rise or fall?
Many industry experts believed rates would rise further and faster in 2021.
However, there’s a tug-of-war in the current market keeping mortgage rates low even when it seems like they should have risen.
What could drive mortgage rates up?
- An improving economy — The better the U.S. economy performs for jobs, consumer spending, and overall growth, the higher interest rates should go
- Inflation — Inflation almost always leads to higher mortgage rates, and inflation rates in 2021 have far exceeded expectations. (Although the Federal Reserve still maintains current inflation rates should be temporary)
- Real estate demand — Despite low inventory, demand for new homes and existing homes remains incredibly strong. Normally, a surge in mortgage financing should lead to higher rates
What’s keeping mortgage rates low?
- The Delta variant — Fear that the coronavirus Delta variant could stall economic growth at home and abroad is pushing mortgage rates down. Remember that weaker economies lead to lower mortgage rates
- Easy money policies by the Federal Reserve — By keeping its benchmark interest rate (the Federal Funds Rate) near 0% and continuing to purchase billions of dollars worth of mortgage-backed securities (MBS), the Fed is keeping mortgage rates artificially low
- Foreign investment in U.S. debt — Foreign investors continue to purchase relatively safe U.S. investments, including things like 10-Year Treasury bonds and MBS. An influx of dollars from these investors means continued low interest rates for borrowers
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