While mortgage rates have come up a bit from recent record low rates, they are still hovering in what is a historically low interest rate range. A question we frequently hear is “When are mortgage rates going up again?”.
In 2020, we shared that the experts predicted interest rates would go up around the month of March 2021– and yes, that’s what’s happened. Now, the experts are a bit quiet as they try to predict what will happen during the rest of 2021. Many things are hanging in the balance, like Covid-19, the COVID relief bill, and when the economy will open up again.
That uncertainty put pressure on interest rates to rise. However, the majority of financial experts do think rates will hover around their current range, around the low 3% range for conventional loans and the mid 2 percent range for VA loans and FHA loans, all still remarkably low mortgage interest rates.
If interest rates do start going up very much, watch for the federal government to step up quantitative easing which is the government buying mortgage-backed securities. It’s important for our economic recovery for interest rates to remain low.
In the mortgage industry, the saying is “rates might go down again, but they will certainly go up– we just don’t know when.” At Indigo Mortgage, we don’t know the “when”, but we will always be available to help with your mortgage loan, VA loan, or refinance across New Mexico.