Credit cards are now becoming a big part of the financial lives of millions of people.They're used to make the payments you might make on a credit card.They're also a convenient way to get your mortgage, especially if you've got a family member with the same income level as you.But they can also be risky if they're used incorrectly, as was the case in this recent story.The story starts in 2007 whe...
By Jeff Deeney | ESPN.comThe next five-year mortgage rate for an individual with a mortgage of at least $200,000 in the United States could be about 2.5 percent higher than the average rate of inflation in 2021.
The average rate for a mortgage that is at least 50 percent lower in 2021 would be 1.9 percent higher, according to the Mortgage Bankers Association, the industry’s trade group.
The median mortgage rate in 2021 was 3.9.
A typical home sold for $240,000 or more in 2020, and an average mortgage would cost about $300,000.
The mortgage rates could increase as early as 2021.
That’s the same year that the U.S. government’s benchmark rate for home mortgages will be announced, according the Bank of America Corp. In an interview Tuesday, David Weisburd, the bank’s chief financial officer, said he expects the average mortgage rate to rise from 3.6 percent in 2020 to 3.8 percent in 2021 as the Federal Reserve and other officials consider changes to the U and Fannie Mae and Freddie Mac mortgage-backed securities.
The average rate in 2019 was 3 percent.
The most likely way for mortgage rates to rise in the next decade would be as the U, Fannie and Freddie, and other central banks increase lending to people with mortgages at least half the median amount, Weisbel said.
“In terms of inflation, the inflation rate is probably going to go up, and the inflation-adjusted rate is going to be higher than in 2019,” he said.