It may feel like we just caught our breath from the winter holidays, but here we are at spring’s doorstep once again. And the housing market has not looked this good in a long time: Experts expect high demand, low interest rates, and a strong job economy to combine for the perfect recipe for a robust spring buying season. The National Association of Realtors compiled an analysis of everything you can expect going into spring and beyond.
Mortgage rates are starting off in the new decade at very good levels. According to mortgage finance provider Freddie Mac, the 30-year fixed-rate mortgage dipped to 3.7% in the first two weeks of January, compared to 4.5% a year prior. Thus, mortgage rates started off the new year nearly 80 basis points lower than they were at the start of 2019.
At the same time, the unemployment rate is below 4.0%, with inflation hovering around the Federal Reserve’s 2.0% target. In this fairly stable interest-rate environment, homebuyers are expected to benefit in 2020.
Economic activity early in the year usually provides useful clues about the future. Let’s take a deeper look at some of the economic factors expected to affect the housing market at the national and local levels.
