If you were looking for a home in 2019, you are likely keenly aware of the interest rates. Early forecasts had indicated a year of rising rates, but the year ended with rates significant lower. What a difference a year makes!
So what does that mean for 2020?
The first thing to remember is that predictions are not set in stone. They are based on a lot of expectations that may or may not come to pass. While it’s natural to look to predictions for future planning purposes, be prepared that changing circumstances may render the predictions moot.
Greg McBride, CFA, Bankrate chief financial analyst, believes that rates will remain relatively stable, around 4 percent, in 2020.
McBride says, “The benchmark 30-year fixed rate mortgage will hopscotch back and forth over the 4 percent mark for much of 2020, remaining low enough to facilitate homebuying and providing ample refinancing opportunities on those trips below 4 percent.”
After rising slightly at the start of 2019, rates have hovered below 4% since une 2019. The low point occurred in Sept, when the 30-year rate hit 3.74%. Low mortgage rates mean that homeowners can refinance into lower-rate mortgages, which saves them money, and new borrowers can get qualified more easily and enjoy lower monthly payments.
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