2020 Mortgage Rate Predictions

2020 Mortgage Rate Predictions

– Hey guys, Austin Schnieder
here with The Mortgage Reports, and today, we're gonna give you the 2020 mortgage rate
forecast from experts. So, a lot of people are
wondering what mortgage rates will do in 2020. That's why we interviewed 10 experts to find out their predictions for the mortgage rates in the new year. Every expert we interviewed called for continued low
rates in the high 3% range. But the individual predictions
were surprisingly varied. Our lowest predicted 30-year
fixed rate was 2.89%. That would mean that rates would drop to their lowest rates ever by late 2020. The expert said that this could happen if the US economy enters a recession. Rates are already low, but
would be pushed even lower in the event of an economic downturn. Our highest predicted rate was 4.5%. This might happen if the
US economy stays strong, and the recession fears
fade in the new year. But there were many more predictions besides the straight numbers. Here are three trends from the experts. Trend number one, trade wars and tariffs could actually push rates higher. Trade wars are usually good for rates since they introduce
uncertainty into the economy, but tariffs could push up
prices for US consumers which causes inflation and
inflation is bad for rates.

Trade wars are a two-edged sword, and their effect on mortgage
rates is highly unpredictable. Trend number two, 2020 could
be a highly volatile year due to the US election. In 2016, the mortgage rates
were expected to stay steady but shot up faster than they had in years after Trump's election. Trump was viewed by the markets
as good for the economy, so rates rose in anticipation
of higher economic output. In 2020, we could see
rates respond quickly to developments in the US election, especially if an unexpected candidate wins in November of 2020. Trend number three,
mortgage rates will swing more based off of international
news than US economic news.

2020 Mortgage Rate Predictions

Things like Brexit, the
Middle East conflict, and unrest in Hong Kong
will affect the rates. International interest rate
policies will affect us, too. Many other countries are lowering rates, some even issuing negative interest rates. That could help rates in the US. It's possible that lower rates abroad could put downward
pressure on the US rates. All in all, there's a really good chance that rates will be low and the housing market favorable in 2020. As always, if you see a great rate, it's probably a good idea to lock it in even if predictions are for
low rates all year long. Rates are highly unpredictable and can shoot up at any time. To learn more about mortgage
rates and more predictions, visit us online at TheMortgageReports.com. Thanks so much for watching. We'll see you on the next one. (upbeat music).