January 7th, 2020 10:12 AM by Steven Hofberg
Happy New Year! We said goodbye to 2019 and now welcome 2020 and
a new decade. Predicting the housing economy is difficult anytime, but even
more so given the trade and geopolitical uncertainties that will continue in
2020 as well as the national election coming up in November.
However, there is some consensus on a few key measures among
both industry players (such as financial institutions) as well as the
governmental mortgage giants Fannie Mae and Freddie Mac including:
Mortgage rates, which
dropped from 4.50% to 3.75% during 2019, will continue to decrease, but only
modestly. They are expected to reach approximately 3.60% in 2020.
Housing activity will
show an uptick, with existing home sales up 5% year over year, to approximately
5.5 million sales per quarter in 2020.
are expected to remain steady in 2020, with purchase loans becoming a larger
percentage of total originations.
Tight inventories of
homes for sale will continue to push home prices up, especially in urban areas
like the DMV. Expect the median home price to rise about 5% in 2020.
For those contemplating changes to their housing or mortgage
situation, the most important factor is your personal financial (and
non-financial) goals. How your goals relate to the market is where we can help.
Contact Margie to discuss how you can benefit from what looks
to be a stable market in 2020 (at least for now.)
Wishing everyone a happy and healthy 2020!
Steven H Hofberg, Operations Manager