Mortgage Bankers Association December 2020 Rate Forecast

Real Estate Broker/Owner with Hawaii Dream Realty LLC RB-19372

Waning Mortgage Forecast

The December 2020 forecast is unchanged from past months as the waning effects of the pandemic persist on the mortgage market.  At the moment, the mortgage rates remain favorable with intentions to stimulate demand by prospective homebuyers. However demand has remained constrained due to the economic hardship brought on by the pandemic.  

If inventory remains low into early 2021, it's possible that home prices will continue to go up. The median sales price for properties in November 2020, according to the Honolulu Board of Realtors, was $872,500 for a single family home. The number of single-family homes sold above the original asking price skyrocketed 210.2% compared to this time last year.

While there are some indicators of positivity, there are also potential negatives that could come into play. Unemployment numbers are still high, and another pandemic lockdowns throughout the winter could cause those numbers to rise.  Finally, while there are some unnerving indicators, the forecast shows that record-low mortgage rates will hold into the foreseeable future.

Historical Perspective

The mortgage rate graph depicts a steady decline during the past 40 years. The graph was from a housing and economic recovery webinar presentation prepared for the Hawaii Association of Realtors by Dr. Paul Brewbaker, a respected and renown local economist. Click Here if you would like to view a full recording of the webinar.

Stay Informed

Register on  to receive the Housing Inventory Snapshot to follow the market trends.  The Housing Inventory Snapshot is also posted to our blog however in order to receive the monthly trends you must register on the website.

Check out how much your home is worth based on local home values in your neighborhood. Simply enter your address and see what is available in your neighborhood.

See available Just Listed Honolulu, Hawaii homes that are for sale right now.

VA Home Loans

So what do these rates mean if you are seeking a Veteran's Assistance or VA home loan? VA home loan is a home loan guaranty program offered to Veterans, military service members and eligible surviving spouses. The rates one actually qualifies is based on several factors including the loan program, credit score and credit worthiness. The forecast rates are only intended to provide you with insight into what the market considers as the overall average rate for the given period. You must check with your financial institution to find out what rate you qualify and in some cases that rate may be lower than what you see forecast by Mortgage Bankers Association.

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Aloha and Mahalo,

Theresa Harden
Principal Broker e-PRO, SFR, Realtor

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Comments (1)

Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

This is very useful information for buyers and sellers alike

Dec 31, 2020 02:37 PM