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Mortgage Rates Forecasts for 2021

While there’s no way to fully predict what mortgage rates will look like in the future, experts in the industry are consistently analyzing several key indicators to predict the trends of future rates.   Mortgage rates are tied to the basic rules of supply and demand and key factors including economic growth, the Federal Reserve’s monetary policy, inflation, and the state of the bond and housing markets.  The financial health of a borrower will always be part of the determined interest rate they receive, so keeping your score as healthy as possible is vital.

According to the Home Buying Institute (HBI), 30-year fixed rates for each quarter in 2021 are predicted to be as follows1:

  • Q2 (April – June) 2021 3.2%
  • Q3 (July – September) 2021 3.4%
  • Q4 (October – December) 2021 3.4%


Keep in mind the rates you actually qualify for will be determined by things like your credit score and down payment percentage in addition to current rates, so actual rates will vary.

While the team at Freddie Mac is expecting mortgage rates to rise slightly this year, forecasts are in line with the Federal Reserve’s commitment to keeping interest rates low.  Generally, if the federal fund rate is at low levels, mortgage interests tend to follow suit.   In Mid-March 2021, officials from the Federal Reserve stated:

“The Committee decided to keep the target range for the federal funds rate at 0 to ¼ percent and expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the Committee’s assessments of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time.2

In layman’s terms, we can expect more of the same.

If you’re considering securing a home loan in 2021, now is the time.  While these rates are expected to hold steady, waiting for them to lower might put you at risk for missing out altogether.

Seeking guidance for navigating the purchase of a home?  Schedule your free consultation with our Team!


Disclaimer: The information here includes mortgage predictions and forecasts that were issued by third parties not associated with The Vince Carter Team of Carter Realty Group, LLC.  Economic and housing-related projections should be treated as an educated guess.

1 –3.22.21, New Forecast Predicts 3.6% Mortgage Rates by End of 2021 by Home Buying Institute, Source:
2 –3.17.2021, Federal Reserve issues FOMC statement. Source:

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