In today’s third installment of our economic forecast report for 2020, we’re focusing on mortgage rates. When an economic forecast is published, they will go to the economists of the market, have them look at the statistics, and then make predictions of what interest rates will do based on that.
We anticipated that rates would go up sometime in 2020, but what they’re anticipating now is that rates will remain below 4% this year. Even if they do jump up a bit from where they are now, it won’t be dramatic. Remember, terms are as valuable as price to today’s sellers.
Even though prices are adjusting, interest rates are still as valuable as the price. Even a slight drop in rates can give buyers a lot more affordability. We recently worked with a client who saw their home’s value essentially increase by $30,000 because of this.
Based on the data from many different, respected economics, interest rates should stay around the 3.75% range this year. If you have been considering buying, locking in a rate this low will be huge for your long-term appreciation. You can get an affordable home in a good area with our great market right now.
If you have any questions for me about buying or selling a home, feel free to reach out via phone or email. I look forward to hearing from you soon.