Three Housing Market Trends Homeowners and Mortgage Brokers Should Monitor for 2021
As the COVID-19 pandemic raged throughout 2020, home buyers and mortgage lenders saw the housing market take unexpected detours. With uncertainty permeating every aspect of daily life, we saw home mortgage and refinance rates dip to the lowest in decades. As these rates are expected to either stay flat or continue to fall, other projections for the market will dictate how homeowners and buyers will proceed moving forward into 2021 and beyond. The following infographic provides a brief overview of these trends:
It Will Take Time Before Rates Start Rising
Mortgage rates dipped to the lowest they have been in years. Some projections that fixed-rate mortgage rates will remain relatively steady for 2021, possibly climbing a little bit during 2022. In this case, those looking to refinance their home or buy a new home can continue to take advantage of these record low rates when purchasing their home. In contrast, other projections are more bullish on the recovering economy and predict that rates will rise and continue to grow going into 2021.
Home Prices and Home Sales See A Rise
During 2020, the prices for homes increased, even during the pandemic. As we go into 2021, these prices will continue to rise, but at a more subdued rate than 2020. Projections currently have home prices increasing steadily throughout the year, with room to grow as well. Additionally, home sales are expected to continue to be on the upswing as well. Professionals in the industry believe that young people starting families will help boost this housing market growth as the year progresses.
Suburbs May Continue to Grow Faster Than Cities
Before the pandemic hit, we saw the beginning of an exodus from cities as growing families saw the suburbs’ more open spaces as preferable housing options. While this departure might be exaggerated to a degree, we have seen an upward trend of people moving to the suburbs during the pandemic. During the same time, cities saw a small uptick in people moving into their limits, but it wasn’t at the same rate as people leaving. As people continue to make decisions about where their families will thrive best, we’ll see the battle between suburban growth and city growth continue.
Making Sense of the Trends
Accurately assessing the housing market and what it means for your particular situation is critical for people looking to refinance their mortgage or enter the housing market for the first time. Being mindful of the interest rates available to them, the potential price increases, and where people migrate will help make more informed decisions.
Contact Luna Lending to learn more about the latest rates, speak with an independent mortgage broker and get a jumpstart on your Lake Tahoe investment property for 2021 today!
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