It is great to turn the page on 2020 and look to 2021 for a return to a more normal way of life. The pandemic has had a huge impact on our daily lives and caused tremendous stress on many financial markets. Through all this, the housing market in Dane and surrounding counties remained strong. Rates at historic lows helped buyers’ purchasing power.
Our area has a great mix of homes. The newly increased confirming loan limit of $548,250 will also help buyers purchasing higher value homes to take advantage of the low rates in the mortgage market. Additionally, these rates are now expected to remain low through 2021. Fannie Mae is currently predicting an increase of less than .25% by the end of 2021.
Faster-paced sales of existing homes has pushed Fannie Mae’s economists to upgrade their 2021 forecasts by almost $750 billion. No doubt this means Dane County can anticipate a great 2021 for our housing market.
The unprecedented increase in mortgage activity was one of the few upsides to 2020, which allowed us to appreciate our role as a community bank. As a result, Capitol Bank chose to donate $25,000 to 25 local nonprofits in October. Chosen by our 25 longest-tenured employees, this was a great way to thank this community, especially in a time of such need, and to honor our employees. In addition, our 60+ Capitol Bankers continue to serve on over 30 local boards and committees. Capitol Bank’s growth continues to be driven by our reputation as experts in mortgage lending and business banking.
Congratulations to all on making the most out of 2020 and we wish everyone the best in the new year!