Windermere Chief Economist Matthew Gardner discusses the low mortgage rates (excerpts).
This chart shows 30-year rates since the mid-1970s and, I will be honest with you, as often as I look at it, it still amazes me. From a peak of over 18 percent in the early ’80s, mortgage rates are now below 3 percent — something I don’t think anyone could have believed possible.
And it’s even more amazing when we look at weekly data from the time the pandemic hit. To give you some perspective, 30-year rates have hit record lows nine times since March, 15-year rates have broken their all-time lows 11 times.
Forecasts for conventional 30-year, fixed mortgage rates
So, we know that buyers are very active, and rates are very, very attractive, but some of you may be wondering how long they can stay this low.
Well, here is where I see rates next year. However, it’s always good to take a look at what others economists are thinking too, so I’m including the latest forecasts from some of my industry colleagues.