This past year brought many unexpected and exciting trends in the mortgage world; namely, significant drops in rates that surprised industry experts and homebuyers alike. Industry forecasters are predicting that 2020 will be another banner year for low rates, signaling good news for prospective homebuyers.
Just last month, the 30-year fixed mortgage rate dropped to 3.7 percent, a drastic decrease from the same month the year prior when it reached 4.8 percent. Using data from Freddie Mac, Fannie Mae predicts that the average annual 30-year rate could drop as low as 3.6 percent in 2020 and, if predictions are accurate, that will be the lowest average since 1973. Since that time, the lowest average rate was 3.65 percent in 2016.
If you’re currently renting, but have a dream of homeownership, you may be wondering what these predictions mean for you. This forecast brings about positive news for not only potential buyers who are planning to purchase a home, but also for current homeowners who plan to refinance an existing loan in 2020. However, because rates can change quickly, you might consider taking advantage of periods of low rates to begin the home loan process before they rise again.
If this will be your first time applying for a home loan, the Premier Mortgage Resources (PMR) team is here to walk you through the process and to help make your journey to homeownership an enjoyable one. We offer many home loan programs to fit the many unique needs and financial backgrounds of homebuyers, and we would love to start a conversation with you about your financial goals for 2020 and beyond.
It just takes a simple conversation to take the first step from “tenant” to “homeowner.” Contact our team to be put in touch with a local mortgage expert in your area.