Feb 1 2020 38376 2

Dated: 02/01/2020

Views: 87

Mortgage Rates May Go Even Lower in 2020!

Homebuyers can rest assured they’ll still get agreat deal on a mortgagethis year, even if they’re paying a high price for the actual home.

In a neweconomic outlook, mortgage titan Fannie Mae says it expects mortgage rates to remain low and stable throughout 2020.

The company’s brother firm, Freddie Mac, recently revealed 30-year fixed mortgages averaged just 3.9% throughout 2019, making it the fourth-lowest year on record.

In its forecast, Fannie Mae says it expects this year’s rates to be even lowerat just 3.7%, while five-year adjustable rate mortgages are likely to hold at 3.3%.

Match that with “strong labor markets, rising wages and improved household balance sheets,” and conditions look greatfor prospective homebuyers. Yet the usual hitch remains: There’s never enough homes on the market.

It’s still a seller’s market because the growth in supply, while it’s accelerating, still hasn’t caught up to the growth in demand.

The near-record number of adult children living at home will eventually try to get their own places, meaning demand will only continue to surge.

“Boomers are not moving, so the existing home supply is still at very low levels,” he says.

In its outlook released Jan. 21, Fannie Mae notes that the number of homes for sale was down 5.7% in November compared to the year before, making it the scantest November in at least 20 years.

And while the number of purchases remains flat, Fannie Mae says all of those factors — meager supply coupled with a strong job market spurring demand,  are sending prices skyward.

The U.S. median price for an existing home in November was $271,300, up 5.4% from the same month the year before, according to the National Association of Realtors. That marks 93 straight months of gains.

The decline in interest rates is partly responsible. Lower rates mean people can take out bigger mortgages while keeping their monthly payments the same.

That ends up pushing up house prices, because people end up bidding a little more.

Call me to find out what the current interest rates are for your home purchase by calling Jack Lees at 818 262-0924.

Latest Blog Posts

May 3 2020 38376 1

10 Mistakes Homeowners Are making Around the House1. Using Traditional Light bulbsIf you still have incandescent light bulbs in your home, you could be throwing a lot of money away every month on

Read More

May 2 2020 38376 1

35 Foods to AvoidArtificial Sweeteners-cause diabetesAgave-high fructoseBiscuits-trans fats and palm oilCanned Meats-saturated fatsCheese FriesCheese PuffsCheery Pits-cyanideDiet Soda-fake

Read More

Apr 25 2020 38376 1

7 Ways to Get That DownpaymentBuying a home has always been a dream.  If you’re a first time home buyer, an FHA loan may be your best bet only having to come up with a 3 ½% deposit.;

Read More

Apr 1 2020 38376 2

Five Smart Homebuyer StrategiesThe National Association of Realtors has announced that there’s a housing supply shortage.  Homes are selling quickly and home prices are starting to inch

Read More