Freddie Mac reports that the 30-year fixed-rate mortgage in 2019 was the fourth lowest at an average of 3.90% since record-keeping began in 1971. The GSE is forecasting that in 2020 as well as 2021, mortgage rates will remain historically low, but warned that even with low mortgage rates reducing the amount of interest homebuyers owe, the lack of affordable homes could dampen home sales.
A noted trade group is predicting that the U.S. economy will dodge a recession in 2020 with positive economic growth (Gross Domestic Product) as the calendar turns to the new year. The Securities Industry and Financial Markets Association (SIFMA) is forecasting that there will be 1.8% growth in 2020, up from the June survey of 1.3%. SIFMA says the chance of a recession in 2020 is 25%, unchanged from the June outlook. U.S. workers will see a 3.2% rise in wages in 2020, up from 3.1% in 2019. The Fed's favorite inflation gauge, the Core PCE, could increase to 2.2% next year, up from the current 1.6%.
Workers will see a 3.2% increase in average hourly earnings in 2020, on the heels of a 3.1% gain in 2019,
30-year average fixed-rate mortgage historically in 2019. Housing affordability could pose a problem for buyers in 2020. The U.S. economy will continue to expand next year.
Comments(1)