813.910.8020 Apply Now

Mortgage Broker Tampa, FL | Mortgage Lender Tampa Florida | Marimark Mortgage

  • Home
  • Homebuyers
  • Homeowners
  • Realtors
  • Investors
  • About Marimark
  • Contact Us
  • Mortgages
  • Apply Now
  • Current Mortgage Rates
  • Calculators
  • Testimonials
  • Blog
  • Videos
  • Featured In
Home / Blog / Interest Rates / 2020 Home Mortgage Interest Rate Forecast

2020 Home Mortgage Interest Rate Forecast

January 8, 2020 By Admin

2020 home mortgage ratesLast year, many experts in the housing sector predicted that 2019 would see higher home mortgage interest rates. However, the industry saw rates drop significantly, especially in the second half of 2019. So, as we begin 2020, it’s time to consider how mortgage rates will fare this year.

Will mortgage rates rise, as predicted last year? Or will homebuyers and homeowners witness a similar drop in rates this year?

What to Expect in 2020

According to themortgagereports.com, mortgage interest rates will continue to stay low. The information was compiled by contacting several of the leading lenders, including Wells Fargo, Fannie Mae, NAR, and Freddie Mac. However, despite this prediction, there is no guarantee that rates will continue to stay low.

Mortgage Rate Forecasts

Some homebuyers and refinancers might want to focus only on one forecast, usually, the one that is most favorable. However, trusting just one estimate can lead to making a poor decision. Instead, it’s important to analyze as many of the available forecasts as possible to develop a general outlook for 2020 mortgage interest rates.

The Mortgage Bankers Association predicts a 30-year rate of 3.9%, which is the highest prediction from the Big Six. Conversely, Wells Fargo predicts the lowest mortgage rates for refinancers and homebuyers at 3.55%. The average forecast across all agencies averages out as 3.7%, which is more than a whole percentage point lower than rates in 2018.

Here is an overview of the mortgage rate predictions by select home mortgage agencies:

  • MBA 3.9%.
  • NAHB 3.9%.
  • Freddie Mac 3.7%.
  • Fannie Mae 3.6%.
  • NAR 3.6%.
  • Wells Fargo 3.55%.

While there are differences in these predictions, the differences are minor, and the mortgage rates are well below the rates experienced a little over a year ago.

The 3.7% average is in line with the belief of Odeta Kushi, who, speaking with Forbes, announced that there was a broad agreement that mortgage rates would continue this year’s trend and float somewhere between 3.7% and 3.9%.

What Do the Experts Say?

Aside from the predictions listed above, experts have additional thoughts on 2020 mortgage rates.

Lawrence Yun, Chief Economist of NAR, agrees with his firm’s 3.6% prediction. However, he warns that these mortgage rates could be affected by a growing U.S. deficit and cuts to the Federal Fund rate, which he predicts will occur twice by the end of 2020.

Freddie Mac also waded in on the reason for historically low mortgage rates, with the opinion that such a decline relates to a weak global economy and trade disputes. Despite this, however, the U.S. economy still demonstrates growth, which can benefit people looking to buy a home or refinance in the short term, and they believe that these low mortgage rates could continue for some time beyond 2020.

What Do These Mortgage Rate Predictions Mean for You?

With a lack of economic surprises, homebuyers and owners hoping to refinance are poised to take advantage of these rates. NerdWallet posits that anyone who locks in a mortgage at these rates is doing well, especially considering that mortgage rates between 1978 and 1986 sat in the double digits.

Locking a mortgage rate sooner rather than later protects borrowers from rising rates, should the market experience a sudden shift as the year progresses. With the current economic climate across the world, however, it’s likely the economy will slow further by the end of 2020.

The low mortgage rates indicate there will also be an increased demand for properties, especially in suburban areas, with both Millennials, Gen Xers, and Baby Boomers all looking to take advantage of these rates and snapping up property. Instead of affecting these areas negatively, though, it can show improvements in the area, breathing new life into previously neglected communities.

However, the growing demand has led to a rise in housing prices. So, while mortgage rates remain historically low, home prices continue to rise. Freddie Mac does not believe these prices will affect purchases, though, and predicts that more homes will be sold year-over-year.

What to Do Next?

Buying a home or refinancing early in 2020 is a good choice for many people, as far as interest rates are considered from a historical perspective.

Waiting till later in the year to get a mortgage could also be a good choice, but there is no guarantee that mortgage rates will not rise.

Marimark Mortgage

Marimark Mortgage is based in Tampa, Florida, and serves the mortgage needs of homebuyers, homeowners, and investors in Florida, Virginia, and Pennsylvania.

We specialize in mortgages for first-time homebuyers, conventional home mortgages, refinance loans, reverse mortgages, and FHA, VA, and USDA mortgage options. In addition, we’ve worked extensively with cash-out refinancing and help clients to lower their monthly mortgage payments.

To get started with a mortgage to buy your next home, please fill out our Quick Mortgage Application or contact us.

 

Opt In Image
Stay Informed, It's Your Money
Marimark Mortgage Newsletter

The Marimark Mortgage Newsletter will keep you informed with important events in the mortgage industry that could impact your finances.

We especially focus on ways to save money on your current and future mortgages. And, we continually share the information we share with our clients, because we believe informed consumers are the best consumers.

Real estate agents, and other professionals in the industry, will receive an ongoing wealth of information that will help them serve their clients.

Thank you for signing up!

Filed Under: Interest Rates

Opinions, estimates, forecasts and other views contained in this page do not necessarily represent the views of Marimark Mortgage or its management and should not be construed as an offer to provide financing at the rates or terms mentioned. Due to market fluctuations, interest rates are subject to change at any time and without notice. Interest rates are also subject to credit and property approval. Although Marimark Mortgage attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. Information from this page may be used with proper attribution.

Save with a Mortgage from Marimark

Whether you are buying a home or refinancing, you can save with a mortgage from Marimark Mortgage!

    Search

    Post Categories

    Testimonials

    Refinancing with Mary an absolute pleasure

     
    Refinancing with Mary has been an absolute pleasure. I have never been through the process before and she took the time to explain each step. She was prompt (had a rate locked in right away) and most importantly always answered the phone or emails almost immediately! The communication line alone made the refinancing process every bit worth it. Would recommend to anyone, and will be back for any future purchases! Bret Brennan, March 2021
    See More Reviews
    Marimark Mortgage LLC
    5327 Primrose Lake Circle
    Tampa, FL 33647-1328
    (813) 910-8020
    (866) 910-8020

    Accessibility
    Privacy Policy
    Terms of Service
    Sitemap

    Reviews

    Website Testimonials
    Google Reviews
    Zillow Reviews
    Trulia Reviews
    Facebook Reviews
    Yelp Reviews
    BBB A+ Rating

    FOLLOW US

    • ‎
    • ‎
    • ‎
    • ‎
    • ‎
    • ‎
    Marimark Mortgage is a BBB A+ Accredited Business

    Recent Posts

    • FHA Announced a 30-Basis Point Reduction to Annual Mortgage Insurance Premiums
    • How Can You Improve Your Credit Score?
    • Historical Mortgage Rates From The 1970s
    • What You Need to Know About Mortgage Forbearance
    • Top Tips to Save Money for a Down Payment

    © 2023 Marimark Mortgage, LLC All Rights Reserved. | Internet Marketing by Image Building Media. | RSS Feed

    Reviews / Recommendations: Google, Zillow, Trulia, LinkedIn, Facebook, Yelp, BBB

    Licensed in Florida by the Office of Financial Regulation, Mortgage Lender License #MLD77.
    Licensed in Virginia by the Virginia State Corporation Commission, License MC#4556.
    Licensed in Pennsylvania by the Department of Banking and Securities, License #40222.
    NMLS#248318 – www.nmlsconsumeraccess.org.