Many home owners, prospective home buyers, and REALTORS® are paying close attention to mortgage interest rates as we ring in the new year.
There are many variables that influence the direction of long term interest rates, but most experts agree the 3 major areas to watch are inflation, the national and global economy, and trade negotiations with China. Each of these in fact are interrelated to some degree. For example if tariffs increase, and prices of goods is driven higher, then that can lead to inflation. But if the economy continues to slow, the effect of inflation will be muted.
Most economists and industry experts agree that mortgage interest rates will stay low throughout 2020 because of a weakening global economy and trade uncertainty. Therefore next year is shaping up to provide significant opportunities for those seeking to jump into home ownership, whether it be first time home buyers, trade up buyers, those considering downsizing, and anyone interested in expanding their real estate investments. Lower interest rates equate to greater buying power and lower long term acquisition cost which increases your return on investment.
Now is the time to have a mortgage expert evaluate your situation and construct a game plan for 2020. Visit advantagelending.com to learn more about the home loan process.