Are Mortgage Rates Headed Below 3 Percent?

In March, mortgage rates in the United States hit an all-time low of 3.29 percent—and have hovered near that low ever since.

But according to the most recent Housing Forecast from Fannie Mae, mortgage rates could drop even lower in the coming year, potentially dipping below 3 percent for the first time.

In the housing forecast, Fannie Mae predicts that mortgage rates for 2020 will average 3.3 percent, which would already be near the all-time low. But in even better news for buyers, they predict those rates will fall even further in 2021, for an average mortgage interest rate of 2.9 percent—and, if that proves true, it would be the first time mortgage interest rates have dropped below 3 percent.

The Takeaway:

What does that mean for you? The lower the interest rate you secure for your mortgage, the more you can save over the course of your loan—so if you’ve been thinking about buying a home, it looks like the next year is going to be a great time to make a move.