Will 2021 Be the Best Year to Buy a Home?
Few would argue that 2020 has been one of the most unusual years in recent memory. Much of the world shut down as public health agencies attempted to stop the spread of the novel coronavirus. Additionally, many governments provided economic stimulus to their citizens as an incentive to stay home. In addition to direct cash payments, the United States government also provided eviction and foreclosure relief through the end of 2020. This helped to keep the housing market afloat for much of the year. However, 2021 might see a much different housing market. For those who are prepared, the next year might provide a great opportunity to get into a new home.
Low-Interest Rates When COVID-19 started its rampage across the globe, one of the first steps the Federal Reserve took was a​ ​quick interest rate cut​. Two weeks later, an emergency meeting of the Fed led to another cut. Effectively, governmental borrowing rates in the US have been near 0% since March. This means that borrowing money is cheap. While the interest rate set by the Federal Reserve is not the only factor that impacts mortgage rates, there is a strong correlation. As 2020 moved into summer and fall, mortgage rates for 30-year loans dropped to records