When interest rates go down, it becomes cheaper to borrow money, which means people and companies will be more likely to take out loans.
And as a result, they’ll spend more money.
That increased spending will fuel the economy and, hopefully, lead to the creation of more jobs.
Are interest rates going down in 2019?
According to three industry forecasts, the trend toward low mortgage rates, slowing home price growth and increased housing construction will continue well into 2020. Just yesterday, Freddie Mac reported an average 3.65% rate on 30-year, fixed-rate loans—a whopping 1.06% downslide since just one year ago.
Why are interest rates dropping?
The Fed lowers interest rates in order to stimulate economic growth. Lower financing costs can encourage borrowing and investing. However, when rates are too low, they can spur excessive growth and perhaps inflation.
Are interest rates going down in 2020?
Forecasts for 2020 say rates will average around 3.7%. For instance, rates could bounce between 3.5% and 4% all year, and you’d get an average of around 3.7%. But when you lock during that range is important. The good news is that 30-year fixed rates are now near 3.5% according to Freddie Mac.
Are mortgage interest rates going down?
Mortgage rates could go down even more. Mortgage rates are expected to stay at historically low levels over a relatively long term. A recent forecast from Freddie Mac’s sister company, Fannie Mae, said 30-year fixed-rate mortgages are likely to avearge 3.7% throughout 2020 and 2021. In 2019, the average was 3.9%.
Will mortgage rates drop in 2020?
Will mortgage interest rates go down in 2020? According to our survey of major housing authorities such as Fannie Mae, Freddie Mac, and the Mortgage Bankers Association, the 30-year fixed rate mortgage will average around 3.7% through 2020. Rates are even lower than that as of March 2020.
What is today’s 30 year fixed mortgage rate?
Current Mortgage and Refinance Rates
|30-Year Fixed Rate||4.0%||4.128%|
|30-Year Fixed-Rate VA||3.875%||4.243%|
|20-Year Fixed Rate||3.875%||4.051%|
|15-Year Fixed Rate||3.25%||3.454%|
8 more rows