Rates for 2019 have been low since the spring and show no sign of increasing dramatically in the coming months. As of December 2nd, rates are hovering at about 3.7%, which is actually the expected average of rates in 2020. Good news, right? Absolutely!
That being said, 3.7% is the expected average for 2020. There’s no precise way of estimating impacts on the Market if there are unexpected shifts in the economy next year. The Market is facing an unprecedented amount of pressure from various political events and it is still unclear if they will affect rates.
One other factor to consider is that on Oct 30th, the Federal Reserve gave us one of the most dramatic rate cuts since the 2000’s recession, meaning it is incredibly unlikely the FED will be cutting rates any further any time soon.
In the end, if forecasters are correct, mortgage rates could drop to 3.5% in the coming months, but they could also increase to 4%. That kind of fluctuation throughout the year still works out to about the 3.7% we’re currently experiencing now. Though of course, that’s only if the forecasters are correct and events in the ensuing 2020 election cycle do not drastically affect the Stock Market overall.
Ultimately, if you’re looking to lock in a good rate, December is the time to do it! You will avoid the risk of market fluctuations and the effects of unforeseen or measurable economic shifts while still experiencing the average low rate that is otherwise predicted for the year ahead.