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2021 kicks off with record-low mortgage rates; homebuyers encouraged to take advantage

Average mortgage interest rates have fallen to 50-year low
Posted at 9:59 PM, Jan 19, 2021
and last updated 2021-01-19 23:50:17-05

PORT ST. LUCIE, Fla. — People buying homes during the pandemic say the search has been a struggle, but there is some good news for prospective home buyers for the start of 2021.

Average mortgage interest rates have fallen to a 50-year low, according to Freddie Mac.

Freddie Mac reported average 30-year and 15-year average rates at 2.65% and 2.16%, nearly a full percentage point lower than a year ago.

Freddie Mac reported, "This low mortgage interest rate environment is projected to continue through 2021 and 2022 as the Federal Reserve has voted to keep the interest rates anchored near zero for a longer period of time if needed until the economy rebounds.”

For people in the market for a new home or looking to refinance, it’s encouraging news.

Gregg Santos has been in the market for about a year, ever since his son was born.

“It’s the next step in my life where I need to think about my family and living in a better place for them and myself,” Santos said. He’s looking to leave Riviera Beach and buy a home in Port St. Lucie.

He’s felt the pandemic home hunt struggles many have experienced.

“It’s a lot more challenging…whatever’s in the market goes away really quickly,” Santos has seen. “I'm noticing that even the smallest square footage lot is going for so much more money.”

He’s encouraged that the lower interest rates may help offset some of the fears of making a big investment during uncertain times, as well as purchasing a home when prices have been increasing.

“That actually helps out a lot. It creates patience on the buyer’s side,” Santos said.

It may also encourage him to make his purchase sooner than later.