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.

Reverse Mortgage Rates for Washington, Oregon, Idaho, and Colorado


Reverse mortgage rates are surprisingly low even for reverse mortgages, a loan available to seniors age 62 and older. One primary advantage of a reverse mortgage is the interest charges may be repaid at any time and any amount you choose rather than a scheduled amortization like a 30-year fixed mortgage. Tip: Compare rates and lenders as you would with any mortgage loan. 

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