Mortgage rates have indeed come off their recent record low, but they are still in a historically low range. So, the question we get daily from Colorado homebuyers and those looking to refinance is “When are the rates going up again?”.
Last year, we said that the mortgage experts predicted the interest rates would go up around March of 2021– and lo and behold, here we are. Experts have been a bit quiet trying to predict what’s in store for the rest of 2021. Many things are still hanging in the balance, like Covid-19, the COVID relief bill, and when the economy will open up again.
Those events put pressure on interest rates to go up. But the majority of financial experts do think mortgage rates will hover around their current range, in the low 3% range for conventional loans and in the mid 2 percent range for FHA and VA loans.
Look for the federal government to step in if rates start going up, by stepping up quantitative easing. That is when the government is buying mortgage-backed securities. It’s important for the economic recovery for rates to remain low.
The saying in the mortgage industry is “rates might go down again, but they will certainly go up– we just don’t know when.” If we can help with your mortgage or refinance in Colorado, call Indigo Mortgage.