Rates, rates, rates … it’s all the rage, right?
We have spent 2020 with record breaking low mortgage rates. At every rate drop we thought that was the “bottom” yet, it would continue to drop again, and again. Putting us in the 2’s by mid-2020 into the start of 2021.
Where are we today? Could the rate party be over? Well, if the past two weeks have been any indication, then that sub 3, 30-year fix may be a thing of the past. Rates are about a half percentage higher currently. The truth is, rates are still great and will continue to be for some time!
We knew this day would eventually come … the market could not sustain at such low rates. What drove the rate increase? Could be any number of things, but often times rates react to the here and now. Market investors have been driven by fears of stimulus and inflationary concerns and they have been reacting in an overzealous mindset.
The market ahead …
As the demand for money dropped in 2020 so did the rates. As the economy re-opens and businesses and consumers start to borrow money the expectation is for rates to increase. This is good news. Our economy is coming back. And, rates are coming into a ‘normal’.