Mortgage rates ended the year will 16 record lows, reports Yahoo Finance, down 108 basis points year over year as 2020 came to a close.
In Houston, listings don’t last long. “I think as long as interest rates stay low, we’re going to see the real estate market in Houston continue to be real hot. There are homes that can’t stay on the market,” says realtor Lily Jang of Houston’s Lily Jang Real Estate. She tells of a home in the Tanglewood area she put on the market one morning that was sold by sunset.
The cost of a home increased in 2020 as people working from home looked for more space and quarantines made families more conscious of their environment, and that’s expected to continue this year. Realtor.com’s 2021 forecast sees an uptick in prices but at a slower rate, anticipating a 5.7% increase in the year, mostly likely in the second half. Historically low interest rates will inch up, probably ending at around 3.4%. It’s currently 2.72% for a 30 year fixed rate mortgage. That will make monthly payments a little higher, and will hinder first-time buyers. Taste in homes has altered in the past year. “Things have changed,” says Jang. “Everything is different now. And as long as interest rates stay as low as they have we’re going to continue to see this market stay red hot.” Good news for sellers.
photo: Getty Images