2019 was quite the year for the U.S. housing market. Will 2020 keep the trend going? How will the housing market be affected by the current economic climate?
Whether you are selling, buying or thinking about either, interest rates are usually at the top of the mind! Here is a break down of the current mortgage interest rate trend.
Mortgage interest rates steadily decreased in 2019. Economists think interest rates will stay around 3.7% for a 30-year mortgage in 2020. But, this is never a guarantee with tariffs and trade wars that can gradually shift the economy. This can result in the Federal Reserve slowly increasing interest rates to balance things out.
What lower rates mean for buyers
A mortgage with a more favorable interest rate can create long-term financial benefits, which is appealing to buyers.
What lower rates mean for sellers
Buyers will be more motivated to buy your home sooner than later if the interest rates are low. If rates start to rise, plan for your house to be on the market a little longer. A mortgage is a big commitment, adding in rising interest rates to the mix can make buyers pause.
Whether you are thinking about buying or selling, take control of the current interest rate trend with a professional at Freedom 512. Visit individual agent profiles, or call 512-818-3463.