Mortgage rates stayed relatively low in 2019, allowing for many to purchase their dream homes with relatively low interest. But will the trend continue into and through the new year? It is important to know the mortgage rate outlook for 2020 as it can play a role in your ability to afford the home you desire.
An Overview of 2020 Mortgage Rates
The lower the interest rate the less the monthly cost is likely to be, and some have even saved hundreds each month by knowing when to purchase and finding the best rate possible. The following is an overview of what to expect with mortgage rates in 2020, including tips on how to find the best mortgage rate possible during the home buying process.
What is the current mortgage rate?
As of January 9th, the mortgage rate is 3.81%, which is down from 3.86% a week ago and 3.93% a month ago. The average mortgage rate dropped significantly in the past several weeks, and the month of January is promising for prospective home buyers. But will this positive trend continue? The year 2019 saw mortgage rate fluctuation, although it was overall very generous for home buyers. While there were times the average rate rose above the 4.00% threshold, it typically stayed just below it, and the trend towards a sub 4.00% mortgage rate has thus far continued into the new year.
Mortgage rates should remain favorable for buyers
Many real estate and financial experts expect mortgage rates to remain around 4.00% for 2020, which proves favorable for first time home buyers, homeowners who are interested in refinancing and sellers. However, the mortgage rates may rise in the second half of the year due to inflation, although a significant increase is highly unlikely. For those who are interested in securing the lowest mortgage rate possible, now until June and July is an ideal time to purchase.
Demand will likely remain high in 2020
The mortgage rate should remain low for home buyers in 2020 and is not a concern. Perhaps a bigger concern, however, is home demand, and more people are home purchasing is likely to remain high in 2020. This means there may become more competition for desirable homes and homes, in general, will stay on the market for shorter periods of time, allowing sellers to list homes at a higher price. Although mortgages are not an issue, home buyers may deal with increased prices, and utilizing a realtor to help find the best deals in the area can be highly beneficial in 2020.
How to find the lowest mortgage rate possible
There are certain things that can be done to secure a lower mortgage rate, such as purchasing when mortgage rates on average are low, improving credit score and considering multiple lenders. There are various other factors to consider as well, and taking the time to find a way to get the lowest mortgage interest rate possible can reap benefits the homeowner will see for decades to come.
EXIT Realty Bob Lamb & Associates is Murfreesboro’s most innovative real estate team.
EXIT Realty Bob Lamb & Associates
2630 Memorial Blvd, Murfreesboro, TN 37129