So 2020 is almost here! What is going to happen in the mortgage market? Interest rates – will they go up, down or stay the same? No one knows for sure and just about every year I have expected them to increase since they have been so low! However, 2019 started higher and ended lower than anyone truly expected! So what is the thought for 2020?
At this point, most expect interest rates to remain fairly flat over the next year. That could always change based on information we don’t have today – economic changes, world politics, recession, etc.
Experts are saying they expect rates to stay under 4% for most of the year. Fannie Mae expects rates to average around 3.6%, Freddie Mac expects rates to average around 3.8% and Realtor.com is saying 3.85%. Even if we have a recession, experts think rates will not drop below 3.5%. The housing market is strong but there are other areas that are pulling down the economy – manufacturing is one area that needs improvement.
The biggest issue in the housing market continues to be the lack of inventory. Experts are talking about low inventory again in 2020. This will hurt in the low end of housing market – which is where most first time homebuyers are. With low interest rates, many will be hoping to get their first home and if inventory continues to be an issue, finding that home may be more difficult. The cost of renting seems to be increasing so more people are thinking about buying – with low rates, it’s a great time to think about buying!
Are you thinking about buying a home in 2020? Interest rates should be steady which will help you – now let’s hope the inventory improves so you can find that home of your dreams!!
Leslie Vanderwerf, NMLS ID#335509, AMEC Home Loans, An Equal Housing Lender, NMLS#150953 – Email – Website
