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    Whether you’re thinking of buying a home or just refinancing the one you already own, it seems like next year could be a good year to do it. According to industry experts, interest rates will remain historically low — and it could make homeownership more affordable than ever.

    A Look at 2020

    If you’ve been watching the headlines lately, then you probably know mortgage rates are low — like, historically low. According to a number of industry forecasts, they are supposed to stay that way for some time.

    Take the forecast from the Mortgage Bankers Association, for example. MBA predicts 2020 will average a 3.7 percent interest rate on 30-year mortgages. Freddie Mac forecasts a 3.8 percent rate for the year, while Fannie Mae has an even better outlook for the market. According to the company’s predictions, rates will average 3.5 to 3.6 percent the entire year.

    Couple that with what each forecast shows for home prices, and there’s even better news for homebuyers. According to Freddie Mac, home prices will jump just 2.8 percent next year — less than this year’s 3.3 percent rate and a significant drop-off from last year’s 5 percent uptick. 

    The bottom line? Prices will still increase, but at a much slower clip than we’ve seen in many years.

    What Does It Mean for You?

    So, what do all these numbers mean for you? Put simply, they mean next year could be a good time to:

    1. Buy your first home
    2. Sell your current home and buy a move-up property, or 
    3. Refinance your existing mortgage loan

    Refinancing was particularly popular this year, as rates were significantly lower than in years past. This allowed homebuyers (even some who bought their homes in 2018) to lower their mortgage rates — as well as their monthly payments — and save some serious cash in the process.

    According to Freddie Mac’s economists, this year’s “surge in refinance activity” will likely carry over until next year. Home sales and overall mortgage originations will also be up.

    Want to Buy or Refinance in 2020?

    If you’re considering getting in on the low mortgage rates and slowing home prices of 2020, then reach out to us at Embrace Home Loans today. We can help you better understand your budget, as well as what you can expect for a mortgage payment. 


    30-Year Fixed-Rate Loan Example
    The payment on a $225,000 30-year fixed-rate mortgage at an interest rate of 3.75% with an 80% loan-to-value (LTV) is $1,042.02 with 2 points due at closing. The Annual Percentage Rate (APR) is 4.004%. Payment does not include taxes and insurance premiums, and certain other fees, which will result in a higher monthly payment. Interest rates and annual percentage rates (APRs) are based on current market rates and other factors. Mortgage insurance may be required for LTV >80%. If mortgage insurance is required, the mortgage insurance may increase the APR and the monthly payment. Offer is subject to change without notice or may not be available at the time of loan commitment or lock-in. Loan amount restrictions may apply in certain areas.

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