Mortgage Rates Could Drop Even Lower in 2020
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Mortgage Rates Could Drop Even Lower in 2020
January 21, 2020 11:59 AM
by
Navindra Persaud

A new mortgage rate outlook from Fannie Mae predicts even more declines in mortgage rates for 2020. Fannie Mae is attributing its forecast to a continuously budding economy.

"Low mortgage rates and continued job market strength will continue to bolster demand for home purchases," according to Fannie Mae.

"According to Freddie Mac's survey the average rate on 30-year fixed-rate mortgages rose by just 2 basis points to 3.72 percent in December, and we expect mortgage rates to remain stable throughout 2020."

While stable rates should mean a slow in refinance activity, it could still cause an increase in home prices.

"Strong housing demand, spurred by low interest rates and a solid job market, along with continued tightness in the supply of homes for sale, is helping to bolster home prices."

To see a full breakdown of the forecast from Fannie Mae, click here.

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