Trying to predict where rates will be next year is tricky business. There are many factors that drive them up or down. Many homeowners and house shoppers, however, do look for guidance as the year comes to an end.
As of now, 2020 rates for a 30-year fixed mortgage are forecasted to remain near today’s historically low levels. Freddie Mac and Fannie Mae are expecting rates to average around 3.6% to 3.7% throughout 2020.
Folks want to know if they should secure a low rate immediately on a purchase or refinance… Or wait it out for the calendar year to change hoping for lower rates still in 2020?
The Mortgage Bankers Association – a highly respected national group that represents the real estate finance industry – anticipated an average rate of 3.9% next year. That’s a slightly higher number than now, but still a very low rate. A 30-year fixed-rate began 2019 at around 4.51%.
So even though it’s unlikely the rates will drop significantly in 2020, the nominal uptick still makes the New Year a good time to buy. For current owners you may want to think about refinancing to lock in these favorable rates – just incase!