Forecasting future mortgage rates and interest rates can be crucial in deciding when to buy or sell a home. But the question on all buyers and sellers’ minds is how do I know when these rates will be at a low enough point for me to enter the market? To answer this question the time is now for both buyer and seller parties. In past years such as 2018, we have seen extremely high rates especially in regard to mortgages.
In 2018 the mortgage rates were at 4.94% and fluctuating up to 5% on a daily basis. However, as of March 2020 we are hitting lows of 3.45% with the potential of these rates fluctuating between 3.4% and 3.7 (themortgagereports.com). This can be accredited to the economic uncertainty that we are facing in regard to the coronavirus, but buyers and sellers should not be worried.
This economic uncertainty due to global health issues will actually not hinder the real estate market. In fact, mortgage rates are falling and there is little chance of inflation throughout the next few months of 2020. After reading forecasts and seeing the low mortgage rates the answer that consumers are asking of should I jump into the real estate market at this moment? Is an astounding yes. While this is a seller’s market at the moment with only a “3.0 month supply of homes on the market” it can also be the perfect time for buyers to purchase given the rates. However, buyers, some key insight, if you find a house, buy it.
There will be an increase over 2020 of competition and this will only increase from here, especially in metro areas such as Denver.