Mortgage Rates in 2021

The Fed maintained near-zero rates and $120B/month in QE throughout most of 2021, citing "substantial further progress" criteria not yet met. In November it announced QE tapering — too late, critics argued, as inflation had already surged to 7%.

CPI jumped from 1.4% in January to 7.0% in December — a 40-year high — driven by supply chain disruptions, pandemic stimulus, and surging housing costs. The Fed initially called inflation "transitory."

The 30-year mortgage averaged 2.96% — the all-time annual record low. The weekly low was 2.65% in January. Housing prices surged 18–20% nationally as record-low rates, massive stimulus, and remote-work demand collided with minimal inventory. Bidding wars were common nationwide.