At the end of the first week of 2021, the 30-year rate hit 2.65 percent, a new low. Freddie Mac expects the low interest rate environment to continue through both this year and next, averaging 2.9 percent through this end of this year and 3.2 percent in 2022. Along with the low rates, the demand for housing has also been supported by the ability of workers to do so remotely. Sales in 2020 reached levels last seen in 2006. Annualized sales hit 7.6 million in the fourth quarter with strong showings from both new and existing home sales. Freddie Mac forecasts total home sales to be 6.8 million in the first quarter of 2021 and to average 6.5 million for the full year. The level of home sales has put pressure on housing inventory which has now hit an all-time low of 1.23 million available homes, only a 2.3-month supply at the current sales pace. This has, in turn, driven home prices up; the quarter over quarter increase in the fourth quarter was 4 percent.