Good morning, Tom Heath with the Heath Team at Nova Home Loans. Today is October 5th, and this is our weekly update on mortgage and related matters.
We are in the first Monday of October which means we’re in the fourth quarter heading into the beginning of 2021. Lots of questions coming across my desk and emails about what do I see for the future and the economy and mortgage and interest rates and all kinds of good stuff for 2021 and like everyone else watching this, I really don’t know. We’re looking at trends and the various indicators that may give us some insight into what’s going to happen in 2021, but that can all change very quickly.
We do know that Tucson is a highly sought-after city and, as I mentioned a couple weeks ago in one of these videos, was the number one search in Google for relocations. We also know that the FED has indicated a desire to keep interest rates low for the foreseeable future. So they will continue their efforts to buy mortgage-backed securities, which is the driving force to keep interest rates on mortgages where they are currently.
We do expect rates to be low. We expect there to be high demand for Tucson properties, which seems to bode well for the real estate market, we don’t know how things are going to happen with jobs, as the stimulus staggers through Congress, that could have an impact. Any issues or delays with COVID-19 and the vaccine could have a problem in jump-starting the economy. Additional closures could be an issue. So we really don’t know precisely what’s going to happen, we’re just trying to manage from day to day, week to week, month to month.
As we’re talking to our borrowers, indicating it’s a good time to lock in a low interest rate. But if you decide not to, especially on a refinance if you’ll be a little more aggressive, the likelihood of them going up very far, very fast is not great at the moment. However, if you’re happy with the interest rate, if you’re happy with the payment, I wouldn’t get too greedy because take it while you’ve got it. Even if it improves a little bit, you’re better off than risking the upside the uptick in interest rates.
For a foolproof plan for 2021, I’m consulting my typical resources and I’ll let you know what I think here in just a moment. I always start my day with a question and today’s question is going to be, will 2021 be a little less chaotic than 2020?
Ask again later… Seems appropriate. Have a great week and we’ll see you next Monday for another Mortgage and Real Estate Matters.