Q: Are interest rates expected to rise                  over the next year?⠀⠀⠀⠀⠀⠀⠀

Q: Are interest rates expected to rise over the next year?

A: 📈So far this year, mortgage rates continue to hover around 3%, encouraging many hopeful homebuyers to enter the housing market. However, there’s a good chance rates will increase later this year and going into 2022, ultimately making it more expensive to borrow money for a home loan. ⠀⠀⠀⠀⠀⠀⠀⠀⠀

Mortgage rates are forecasted to rise to about 3.5% by year’s end due to an improving economy that is emerging from the pandemic. The rise will not dismantle the housing market; instead, it will decelerate the market from an insanely Hot Seller’s Market to a regular Hot Seller’s Market.⠀⠀⠀⠀⠀⠀⠀⠀⠀

Here’s a look at what several experts have to say.

📈Danielle Hale, Chief Economist, realtor.com: “Our long-term view for mortgage rates in 2021 is higher. As the economic outlook strengthens, thanks to progress against coronavirus and vaccines plus a dose of stimulus from the government, this pushes up expectations for economic growth . . . .”

📈Lawrence Yun, Chief Economist, National Association of Realtors (NAR): “In 2021, I think rates will be similar or modestly higher . . . mortgage rates will continue to be historically favorable.”

📈Freddie Mac: “We forecast that mortgage rates will continue to rise through the end of next year. We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.”

📈So in a nutshell, if you’re planning to buy a home with a mortgage, purchasing before mortgage interest rates rise may help you save significantly over the life of your home loan.