Mortgage rates in 2020 will not stay as they are at the end of 2019 – and that’s actually a good thing.
Mortgage rates may continue to fall, according to a forecast by Fannie Mae.
In fact, future homebuyers may look forward to further declines to mortgage rates in 2020, which will potentially reach historic lows.
Rates are unlikely to fall by a full percentage point, but forecasters with Freddie Mac say they are in a downward projection.
Rates are ultimately determined in part by bonds, whose investors track inflation as an indicator of how much risk to take on. Today, inflation remains low, which could mean more positive activity in the bond market, and lower mortgage rates for consumers.
The Federal Reserve also boosted the borrowing market with a few modest rate cuts in 2019, but talks of reducing rates below zero may not materialize in the United States.
If you’re thinking about buying a home in Oahu, 2020 may provide a tremendous and unprecedented opportunity.
If you’re ready to take advantage of this favorable market, please do not hesitate to contact us today to learn more about the borrowing process and which loans may help you achieve your goals.