Where are Mortgage Rates Headed in 2020?


It seems that the question on almost all homebuyers’ minds is- Is now the right time to buy? The right time to buy a home in Washington, Oregon, Idaho, or Colorado is different for each homebuyer; however where mortgage rates and home prices are can present more opportune times than others to buy a home. Rates have reached a historic place in 2019, where could they be headed in 2020 and what does that mean for the next wave of homebuyers? Read on to learn more.

Where were rates in 2019?

Rates have been at a very interesting place in 2019. By the fall of 2019, experts had estimated that mortgage rates would be in the 5 percent. However, mortgage rates were actually more than a whole percentage point lower in the 3 percent. Real estate professionals feel confident that rates will stay low for the rest of 2019

A couple factors played a role in the unexpected outcome. President Trump had been putting pressure on the Fed to keep rates low. In August the Fed lowered rates, this is the first time in over a decade that the Fed has reduced rates. Amazingly enough, the Fed lowered rates again in September by a quarter of a percentage point. Trade wars can also cause rates to lower. The trade wars between the U.S. and China, two countries with the strongest economies in the world, can decelerate economies and lower rates. 

Last but not least, you’ve probably heard something about a yield curve. A yield curve is a curve on a graph that is a good predictor of economic behavior. Currently the 2-year/10-year yield curve is inverted, which is an indicator of a recession and consequently means low rates and low rates to come. 

Where will rates go in 2020?

It’s difficult to know where exactly the market will go, however, rates are estimated to remain low for 2020. Even if rates do rise, rates will still be at historic lows. 

What do low rates mean for homebuyers in Washington, Oregon, Idaho, and Colorado?

If you’ve been considering purchasing a home in Washington, Oregon, Idaho, and Colorado, the remainder of 2019 or 2020 may be a favorable time to buy. Your mortgage interest rate is a fee for borrowing money from a lender. Your interest rate is a percentage of the amount that you are borrowing to finance your home and is paid to your lender monthly throughout the life of the loan. The amount that you are paying in interest can quickly add up, but with rates as low as they are you could be keeping hundreds of dollars in your pocket each month. 

If you’re already a homeowner in Washington, Oregon, Idaho, or Colorado you may be able to cash in on these low rates as well by refinancing your current home loan. Refinancing not only could help you get a lower rate, but it could also eliminate mortgage insurance if you’re paying it, decrease the term of the loan, or lower your monthly mortgage payment, which could save you even more money each month.

In 2018 a lot of potential homebuyers were on the fence about whether it was a good time to buy. Now many people are taking advantage of these low rates and making the leap to homeownership. Although there could be repercussions from such low rates. Typically, low rates have come with a rise in home prices. Therefore, if you have been considering purchasing a home of your own, now or early 2020 would be favorable to buy.

Summary- Mortgage interest rates entered new territory in 2019 by being over one percentage point lower than what experts had predicted and are forecasted to remain low for the rest of 2019. In 2020 rates are projected to continue to remain low. For homebuyers or homeowners looking to refinance, 2020 could be the right time to buy in Washington, Oregon, Idaho, or Colorado and save hundreds on your monthly mortgage payment. 

Patience is the Key to Success in Trading

Forex trader

If you are not stable during the executions of the trades, the returns will always disappoint you. Losses will be consistent due to the impatient trading mindset. This kind of characteristics is very common among the rookies. They will need some grooming to improve patience in the trading approaches. Being solid with the trades setups and plans, the executions of the trades need to be managed. On the other hand, you also need to develop risk management skills. If everything is sorted out properly, you can easily bring good luck.

More importantly, you can be safe in the preliminary stage of trading in Forex. That is why we are here with this article. It will highlight some important problems associated to the novice traders in Hong Kong. To be successful with your trades, it is necessary to manage the efficient forex trading approaches. The concept is simple, you will need to use the least money and trade for the most decent yet impressive profit margins.  

Add discipline to your trading business

When it comes to disciplines, the novice traders might find it hard to follow the rules. Everybody like to be free in the decision making and works related to the profession. The traders also need to ensure a decent performance in the trading business. To manage that, it is necessary to understand the most important rules and regulations for the business. Consider the risk management policy as an example. We have already mentioned that the traders need to risk minimal capital into the trades to be secured. If you plan a 1% risk per trade and follow this plan for each trades, it would be consistent. Then every single trades will be safe and would not bother you too much either.

Like the risk management plan, you also need to sort out the execution plan with trade setups. With proper position sizing, you will need to execute a trade. And for that you must find broker like Saxo.  Try to learn the proper way to find the entry and exit point of a trade. Market analysis prominent for this job of defining a proper entry and exit point. With discipline, you can use every single bit of a quality trading approach to ensure a proper return.

Practice the trade setups properly

Once you are done with the discipline in the trading approaches, it is necessary to gain some skills. For example, the market analysis and position sizing of the trades will be proper trading skills. Moreover, there are two different kinds of market analysis necessary in the trading business. One is the technical market analysis which uses calculative approaches to learn market conditions. The other is the fundamental analysis which uses the price driving catalysts (world economics, events, and politics, etc.) to get hints of possible price movements. For a novice trader, it is not easy to find the best position sizes in the markets. But, if you can practice with proper dedication, it is possible to improve the trading performance with good strategies.  

Trade with less excitement in profits

Excitement of making profits is very common among the rookie traders. Without having the most efficient and effective trading edge, you cannot manage any profit in the Forex markets. This hard truth is very critical to accept for the novice traders. They try to recover the losses but end up with multiple mistakes like overtrading and micromanagement. 

Reduce the excitement for profit-making. Instead of thinking about the returns, you need to care for the most optimum trading approach. You will need to find the efficient trade setups and use them for the executions of the trades. Start focusing on the trade setup and improve your trading skills. The return of the trades will automatically turn into profits when you can concentrate on the trading quality.