2.9% Mortgage Rates? It’s Possible Says Fannie Mae

Amber RandhawaHomeowner and Homebuyer Tips, Real Estate Trends

According to a recent article released by the National Association of Realtors, mortgage rates could continue tumbling over the next year and eventually reach all-time lows. In fact, in Fannie Mae’s Housing Forecast report, economists predict that the average 30-year fixed-rate mortgage for 2020 will fall to 3%, and then possibly go even lower to 2.9% by 2021. This means some highly qualified buyers could receive a rate in the low 2% range.


Just one year ago, the average mortgage rate was 4%, which may leave you wondering, how much difference does a single percentage point make? A 2.9% rate can raise buying power by $36,000 versus a rate of 3.9%. Refinancing a $200,000 loan amount from 4% to 2.9% can lead to a savings of $121 each month.

To read the full article about these falling rates, click here!