Source: Peter DeVries, Loan Consultant – Loan Depot
Jan. 9, 2020
2019 was the best year for mortgage rates since 2011, but what will the new year bring for the mortgage industry?
As we’ve seen throughout the second half of last year, fixed mortgage rates averaged less than 4%. Most economists speculate that rates will remain just south of the 4% mark for the remainder of the year, however, several factors could impact how long today’s low rates will last.
Firstly, the latest crisis with Iran could serve as a catalyst for a drop in 2020 as instability among foreign relations typically drives down long-term interest rates. Secondly, during election years, the Fed is typically reluctant to make any major moves and choose to remain on the sidelines as it relates to hikes or cuts. As long as rates hold steady, consumers are likely to begin the highly anticipated spring buying season earlier.
However, even if rates tick north of 4% as this monumental year unfolds, it’s still extremely attractive when compared to nearly 4.5% rates in early 2019. Despite somewhat low inventory, 2020 will remain an opportune year for first-time buyers, especially considering the positive combination of low rates, newly expanded loan limits, and numerous low down payment options available.
borrowers will qualify for loans
as a result of the recent increase
in loan limits. The Federal
Housing Finance Agency (FHFA) has
announced the increase of the 2020
conforming loan limits for Fannie
Mae and Freddie Mac. In most parts
of the country, the 2020 loan
limit for one-unit properties will
increase to $510,400 from
$484,350. This will provide more
buying power to homebuyers across
the nation. High-cost area loan
limits are also increasing.
|Check out FHFA’s full list of the new loan limits for each county nationwide.|
rates have been edging lower for
nearly 2 weeks and are now at
their lowest in exactly 1 month.
30-year fixed mortgage rate
averaged 3.72% for the week ending
January 2, down two basis points
from the prior week. By contrast,
mortgage rates stood at 4.45% a
year ago. 15-year fixed rates
dropped by three basis point to
If you or your clients are in the market for a purchase or refinance, now may be a favorable time to apply and save on interest over time. Don’t forget to ask me about loanDepot’s mello smartloan™ and how you or your clients will enjoy a faster, more secure, stress-free mortgage process. Source: http://www.freddiemac.com/pmms/
|If you have any questions, contact me anytime! I can help your clients explore the best mortgage options for either a purchase or refinance.|
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