When we last delivered our “Rate Update,” the environment was ultra-low rates. Fast
Tailwinds For Housing In 2020
Dated: December 16 2019
Housing starts of single-family homes are expected to hit the 1M mark for the first time in 12 years. This should help add to much-needed inventory in many parts of the country.
In the final Jobs Report for 2019, which was November, the unemployment rate ticked down to 3.5%, a 50+-year low, while we created a massive 266,000 new jobs. Jobs buy homes, not rates. This kind of labor market strength heading into 2020 should further boost the housing sector.
The Fed is not likely going to cut or hike rates in 2020, unless new economic threats emerge – meaning short-term interest rates are not likely to move much, if at all.
Inflation remains low. Inflation is the main driver of long-term rates like mortgage rates. In the absence of any unforeseen pickup in inflation, home loan rates should remain relatively close to current levels for the foreseeable future.
Bottom line: 2019 was a good year and the data suggests the good times should continue well into the spring of 2020 making it a historic opportunity to have both a strong economy and low rates.
If you or someone you know has questions about Real Estate buying, selling, investing or just a general question, give me a call. I'd be happy to help.
Avo Derbalian became Owner/Salesperson of a real estate company in early 2016 after being a Realtor® for a year and a half, providing services all over Bergen County and Passaic County. Since then, ....