There are many variables that influence the direction of long-term interest rates, but most experts agree the three major areas to watch are:
- Inflation.
- The national and global economy.
- Trade negotiations with China.
These three are interrelated to some degree. For example, if tariffs increase, and prices of goods are driven higher, that can lead to inflation. But if the economy continues to slow, the effects 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 homebuyers, trade-up buyers, those considering downsizing, and anyone interested in expanding their real estate investments. Lower interest rates mean 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. Contact me today to set up a cost free analysis!
