Today is the inauguration day. The question of what President Biden will do to mortgage rates weighs heavily on consumer minds.
By analyzing his future goals, experts have concluded that his goal of offsetting inflation and using government intervention to create affordable housing will result in a rise in both tax and mortgage rates.
According to The Mortgage Reports’ poll, most experts believe that the average rate in 2021 will be at or around 3.51%.
While the same rules for securing low rates remain the same as before, Keep a high credit score and steady employment, it’s important to keep in mind that presidents are not all-powerful and do not singlehandedly influence the entire market.
If the COVID situation does not get better, investors could likely pull out of stocks and invest in treasury bonds as an alternative; an action that has historically caused treasury yields and mortgage rates to drop altogether.
If you’re in the market for a new house or to refinance an existing one, it’d be best to lock in a loan quickly, as the signs of the COVID vaccine and the upcoming inauguration all point to a rise in home prices and mortgage rates.