2021, a year most of us saw as decades away from reach, is finally here and slowly taking off in first gear. You might want to get some of your ducks in a row.
When it came to home mortgages, 2020 was a major roller coaster, welcoming in 2021 with some of the lowest mortgage rates we’ve ever seen. With the five-year fixed rates approximately at 1.39%, lower than the 2.74% noted in 2020, the most pertinent question would be, what can we expect with home mortgage rates going forward?
Many thought leaders and industry experts predict a resurgence of home mortgage rates once the COVID-19 outbreak yields, and even more of an increase when it ends, with rates considerably higher by the end of 2021. However, it is important to remember that there is a logical flow happening.
When Will An Increase In Home Mortgage Rates Happen?
There is no definite answer to this question. Firstly, we have no idea when the pandemic will end. There’s a gradual and slow release from the clutches of the outbreak, and more and more people, governments, and institutions are growing confident. As soon as things flow more into the “normal,” or perhaps, the new normal, only then can we expect higher mortgage rates.
For now, times are still uncertain, and home best mortgage rates will remain low!
The Shift Towards Fixed Mortgage Rates
Although we don’t foresee any drastic change or increase in mortgage rates in 2021, this does not mean they’ll be absolutely no change or increase. As you know, there are constant fluctuations in mortgage rates. However, each increase will not break your bank or continue increasing. Should there be a shift in rates, there will surely be a fall back shortly after the rise.
A Year Of Variable Mortgage Rates
Recently, the Bank of Canada has made it clear that there are no intentions of increasing their overnight home mortgage rates between now and 2023. This is a relief for everyone, so you can rest easy until any changes are made.
With all this said, you should remember that anything can happen, and change is inevitable. Predictions made are not guaranteed. However, there is a seemingly clear direction moving forward.
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