Are mortgage rates going to drop more in 2021?

Here are the rate forecasts: In September, the Federal Reserve announced that they plan to keep lower rates through at least 2023 in response to the pandemic.

In March 2020, the Federal Reserve announced an emergency rate cut to nearly 0%. The cut was an effort to stabilize the economy as the coronavirus pandemic shut down businesses and put millions of Americans out of work.

In January 2020, before the emergency interest rate cut, the average 30-year fixed-rate mortgage was 3.60% and the average rate for a 15-year fixed-rate mortgage was 3.04%. Today, the rates are nearly a full percentage lower. The average 30-year fixed-rate mortgage is 2.73%, and the average 15-year fixed-rate mortgage is 2.21%, according to Freddie Mac.

You can use tools like Credible to compare rates and terms from a variety of reputable lenders. Get started today to see what kind of offers are available to you!

You should also consider using a mortgage refinance calculator to give you an estimate of what your new monthly costs could be. This tool can help you decide if it’s worth pursuing a refinance.