Mortgage rates have been on a steady decline since the start of 2021, after a rapid rise in late 2020. According to Freddie Mac, the average rate for a 30-year fixed rate mortgage was 2.73% in mid-January. This is slightly lower than the mid-December rate of 2.78%.
The Federal Reserve has also kept interest rates low in response to the ongoing COVID-19 pandemic. This has made mortgages more affordable for those looking to buy a home, or for those looking to refinance.
In addition to the low interest rates, the government is offering various programs to make mortgages more accessible, such as the Home Affordable Refinance Program (HARP). This program allows homeowners with Fannie Mae or Freddie Mac-backed mortgages to refinance into a lower interest rate with reduced paperwork. Additionally, the Federal Housing Administration (FHA) is offering options to help those with lower credit scores qualify for mortgages.
For now, it appears that mortgage rates may remain low throughout the year. However, this could change depending on the progress of the COVID-19 pandemic and other economic developments, and so it is important to stay tuned for any potential changes.
