ON THE MOVE: Interest Rates Forecast, How it affects you

Brokers Jeff & Heather Buchanan Answer Your Real Estate Questions

THIS MONTH:

INTEREST RATES FORECAST How it affects you

Astoundingly, mortgage rates have hit RECORD LOWS 11 times this year! In the last few weeks they have been as low as 2.6%. But will the continuing Covid19 pandemic and the election results cause the rates to rise?

COVID19 IMPACT

It’s no secret that the coronavirus has been the major force behind these historically low rates this year. In uncertain times like these, rates tend to fall to keep the economy moving by stimulating borrowing. But once a safe and e ective vaccine for Covid19 becomes widely available, mortgage rates will likely rise as markets stabilize and the economy strengthens.

ELECTION EFFECTS

While Presidents don’t set mortgage rates, they do set the tone for the economy–which has an indirect e ect on those rates. at’s why historically, there has been a lot of volatility in election years. But the impact caused by the pandemic and e orts to stabilize our economy are expected to be more in uential than any change caused by a new administration. In an e ort to avoid a recession, the Federal Reserve has declared its strategy to keep rates low through 2023. at’s great news for home buyers and homeowners looking to re nance. Low rates mean expanded buying power, cheaper monthly payments, and huge savings.

According to Erik J. Martin, Contributor for mortgagereports.com, six industry leaders, including Fannie Mae and Freddie Mac, have predicted that 30-year mortgage rates for 2021 will average 3.03%. While that is a great rate, the rates this month have been even lower. Your best chance at the lowest rate possible is to secure your loan terms now by locking in your rate instead of waiting.

If you are looking for a good lender or are planning to buy or sell a home, call Keller Williams Buchanan Realty Group today. With 3 o ce locations throughout Deep East Texas, our outstanding REALTORS® would be honored to use their extensive expertise and the resources of the largest real estate company in the country to help you get ON THE MOVE!

Je and Heather Buchanan are the owners of Keller Williams Buchanan Realty Group with o ces in Lufkin, Lake Sam Rayburn, and Toledo Bend. Je is the President of the Lufkin MLS, and his background in appraisal gives him a distinct advantage when it comes to pricing and negotiating. Heather serves on the Lufkin Association of Realtors Board of Directors and Chairs the Policies, Procedures & Bylaws Committee. She is also an inactive state licensed attorney with unique insight into the intricacies of real estate contracts. Je & Heather work tirelessly to be a blessing to their clients, their agents, and their community. ey are the proud parents of two baseball all stars and enjoy spending family free time at their lakehouse on Lake Sam Rayburn. e Buchanan’s have attended Timber Creek Church for more than 20 years and base their business on biblical principles. ey would be delighted to serve you, so call them at (936) 6327700 today!