The coronavirus pandemic may have cast a bleak outlook on the real estate industry. However, the storm has blown over, and 2021 looks like a promising year for the industry.
In this interview with a mortgage expert and managing partner at Lend Plus, Jacques Poujade, he shares adept insights and optimistic predictions for mortgages in the year 2021.
Jacques Poujade’s personal blog is a particularly valuable resource when seeking other real estate insights and expert navigation.
Jacques Poujade’s Predictions On Mortgage in 2021
How did Predictions About the Industry in 2020 Play out?
In 2020, it was predicted that the industry might witness an all-time low due to an unprecedented coronavirus pandemic. Till 2020, 3.29% was the lowest 30-year rate on record.
This, in turn, meant a refinancing boom necessary to curb the effects of the pandemic on housing.
From the Happenings in 2020, How Do you Think the Industry Can Survive an Occurrence of This Nature?
Anticipate the event. Now that the industry has experienced this and survived, structural and economic planning to curtail another economic meltdown should be put in place.
While the real estate industry is lucrative, it is one that requires expert navigation. It is, therefore, necessary to keep these predictions in mind, investing in the industry in 2021.
What is The Outlook of The Real Estate Industry In 2021?
I believe the increased distribution of the coronavirus vaccine means economic recovery is in sight. This will, in turn, cause a boom across all industries. And real estate is not an exception. Where real estate is involved, there’s no doubt that mortgage too will be involved. So, you can see the connection here.
What Top Trends Would Shape Mortgages in 2021?
From my experience, and study of the trends, these are my thoughts:
- After the recession caused by the coronavirus in 2020, mortgage rates are sure to go up with the economic recovery.
- There will be a slow down in the refinancing volume of 2020 that was essential to keep housing affordable.
- There will be increased mortgage investments in 2021. Home sales will go up. One of the highest recorded since the 1980s.
- The slow climbing interest rate will keep home buying attractive. There is also a greater demand to work from home and a need for comfortable workspaces.
- A seller’s market will occur. This is a situation where supply does not meet demand. The median sales price will increase by 5.7%, and existing home prices will go up by 7%.
What Advice Would You Give to Mortgage Investors This Year?
If there is the best time to invest in a mortgage or real estate, it is now. Before housing and interest rates return to normal, and the prices are at their highest.
This may be the lowest interest rate ever going forward. There may be fluctuations, with mortgage rates climbing to 3%. However, it is projected to end the year at 3.4%.
Buying a house at this period will enable one to benefit from lower payments monthly on the mortgage. Carefully seek the best mortgage lenders and compare offers. Also, pay particular attention to the annual percentage rate and mortgage interest rate.