August 5, 2021



Will Mortgage Interest Rates Remain Low for the Next Year?

Will Mortgage Interest Rates Remain Low for the Next Year?

“Will interest rates remain this low forever?”

No, so now is the time to buy or refinance. That’s my salesy pitch to you 🙂

But in all reality, it is the truth. Rates are at an all-time low – in some cases, you can even lock into a rate that is below 3%. These are not the rates that your parents or grandparents had slid in front of them while they were sitting with their lender in the 70s, 80s and 90s. These rates are unprecedented – so it is time to act quickly. I’ve put together a few things for you to think about as it relates to today’s rates.

Unprecedented lows. 

We’ve quite literally never seen interest rates this low, and there is good reason to believe it may not happen soon, if ever, again. To put some context to our current situation, right now most mortgage rates are hovering around 3%. That seems pretty low, right? Now take this into consideration: according to ValuePenguin, the average mortgage rate in 1981 was 16.35%.

We’ve come a long way since then… but still consider that just about 10 years ago, interest rates were averaging around 6%. To give you a visual of how impactful interest rates can be, take a look at this:



Rates will rise.

Rates will go up. The exact timing of this is a little bit blurry right now, but it is all but a guarantee. Now, I’m not saying that they are going to shoot up overnight, but you will slowly see them begin to rise. We’ve had a crazy year, and the Fed has made some big adjustments that have made interest rates become very affordable, but we will see some changes from them (the Fed) that will have impacts throughout the industry.

According to, “tapering” is on the horizon. Tapering is when the Federal Reserve will begin slowing its purchases of Treasury bonds and mortgage-backed securities that it began buying last year in order to stimulate the economy. Most experts expect tapering to begin towards the end of 2021 and into the start of 2022.

What does this mean for you? 

Watch out – here comes the salesy side of me again…

You should buy or refinance while rates are low! That’s the easy thing to say though. What I would really challenge you to do is consider your options at this point in your life. Are you ready to buy your first house? Are you ready to buy your retirement home? Are you at a time in which you can refinance your current loan into a shorter term?

These are the questions I would urge you to consider. If you don’t feel the time is right, then wait. BUT, if you think this could be an opportunity for you to make a move, then we would love to help. Contact myself or your local Deerwood Bank team member to get started on your application. We’re so excited to be a part of your journey!

Beck Eckleman close up

Becky Eckelman

Office: 218.825.8946
Cell: 218.820.4771
NMLS#: #730105

Becky Eckelman is a Mortgage Lender for Deerwood Bank. Becky is based out of the Baxter office and has been with Deerwood since 2014. She graduated from the University of Minnesota with a B.A. in Sociology, and then went on to obtain her MBA in Business Administration from the College of St Scholastica in 2004. During the warm seasons, you can find Becky in her veggie and flower garden planting, weeding, and pruning. When the cold seasons hit, Becky spends a lot of time out in the woods – hiking, training her dogs, ice skating, and cross country skiing.

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