Current U.S. Mortgage rates are favorable and top economists predict that rates for the end of 2019 will average between 3.8 percent and 4 percent for 30-year fixed rates. According to Freddie Mac, only one year ago in 2018, a 30-year fixed rate mortgage was 4.81 percent, thus showing a sharp decline in today’s rates. It’s interesting to note that in a year-over-year comparison for the week ending November 21, 2019, 30-year rates stood at 3.66 percent. In addition, mortgages have shown a steady decline throughout 2019, with the historic low for 30-year rates at 3.31 percent in November 2012.
Freddie Mac, Fannie Mae and the Mortgage Bankers Association predict these favorable conditions are likely continue for the foreseeable future, good news for the first quarter and looking ahead to 2020. Fannie Mae has predicted average rates as low as 3.4 percent in the coming months, rates that will likely then remain flat on average for some time.
Freddie Mac’s experts note that trade disputes have been a factor in the increased volatility in the global bond markets, and have influenced investors to move to the stability of the U.S. Treasury. This has ultimately pushed down interest rates. Economists predict that low treasury yields will keep mortgage rates subdued into the early months of 2020.
These lower rates have caused a spike in refinancing as well. Mortgage Bankers Association’s data shows refinance activity is up a whopping 133 percent over 2018, and predict this will continue into 2020.Freddie Mac, Fannie Mae and the Mortgage Bankers Association are expecting home price growth to slow, reaching just a 2.2 percent appreciation rate by 2021, according to the Mortgage Bankers Association.
Favorable mortgage rates are great news for buyers in Breckenridge. This is an ideal opportunity and a great time to lock in the best rates. If you have been putting off a decision to cozy up in your new home with time to enjoy this wonderful winter season, don’t wait any longer. Our team is available anytime to meet and discuss our local real estate market happenings as well as your real estate goals. Stop by our Breckenridge office at 229 S. Main Street, or call us at 970.453.2200. Breckenridge Associates Real Estate. Local Experts on Local Living.
Source: 1.) Forbes.com, Will Mortgage Rates Stay Low Through 2019? Here’s What Experts Predict, October 4, 2019 2.) Forbes.com Mortgage Rates Drop, Home Construction Rises As Housing Market ‘Gains Momentum’, November 22, 2019