2020 was a year where interest rates were low and in most parts of the county so was the inventory of homes for sale, resulting in bidding wars and a rise in home prices. So, what does 2021 hold for home buyers? Although I still don’t have that crystal ball, I am predicting more of the same.

Low Interest Rates

We are still recovering from the 2020 COVID-19 pandemic, and keeping rates low is in everyone’s best interest to help the economy recover. Freddie Mac predicts that, on average, rates will remain in the 3’s for most of 2021. With the rates remaining low, home buyers will be able to afford more home for the price.


Set yourself up for success in the home buying process by reaching out to a mortgage loan officer to get your financials in order before you start shopping for a home.  A pre-approval is buying power and most realtors will require a pre-approval letter to begin showing you homes. 


Three words, “supply and demand.” With the rising value of homes, sellers that have been sitting on the fence through 2020 may consider cashing out and listing their homes for sale in 2021.


With the inventory of homes lower than previous years and sellers cashing in on their current home’s equity, many potential home buyers are instead turning to building their dream home. Fannie Mae and Freddie Mac predict that there will be more home building in 2021 and into 2022 than there has been over the last couple of years.

Is The Time Right For You?

Written by Kristina Dewitt, NMLS ID 173987

Kristina is currently VP Consumer and Mortgage Banking at Investors Community Bank. Kristina has 21+ years’ experience in the financial industry as a mortgage loan officer, realtor, bank manager and coach. She is passionate about customer service and truly knows what it means to be in the business of serving people.

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