Mortgage rates are expected to remain low in 2020 with rates that may peak around 4.25 percent. Bankrate.com chief financial analyst Greg McBride says the current rate is teetering around 4% and expects the economic factors to be conducive to homeownership and mortgage refinancing.
“If we have any kind of stumbles or even the type of concerns we’re seeing on the geopolitical front like with Iran, those things tend to push mortgage rates down,” said McBride.
McBride says that there are still hurdles to be cleared for prospective homebuyers to make a purchase.
“For homebuyers, I think the issues you are still going to confront in the housing market are more around affordability and limited inventory of homes available for sale particularly in those entry-level price points,” said McBride.
The national average mortgage rate is currently at 3.86 percent and dropping, staying below the 4% mark which McBride says is a critical threshold for refinancing.
“Somebody that took out a mortgage a year ago when those rates were up near 4.75 percent, now with rates nearly a full percentage point below that, they are prime candidates to refinance,” said McBride.
