What to Expect: A Look at the Mortgage World in 2020
The housing market is moving full steam ahead into 2020, however, crunched supply could have things slowing down on the horizon. To help keep our customers cruising along, the team at Cambria® Mortgage™ works hard to provide the best tools and services available. Read more about how Cambria Mortgage can assist you with your homeownership needs in the year ahead.
The first topic on everyone’s mind when you mention the housing market is usually interest rates. 2020 looks to continue the trend of historically low rates with some forecasting the average 30-year interest rate to hover around 3.85%. While this is a solid prediction, the wildcard with rates could be the 2020 election. For now, it is safe to say rates will remain low at least into the new year.
The limited supply and large demand will keep home values increasing in 2020. The local appreciation is forecasted to outpace the national average, which is good for Minnesota homeowners. The predicted increase locally is predicted to be around 2.8% while nationally it is predicted to be around .8%. Combined with the low rates, the continued home appreciation will make it a good year to refinance to lower your rate or to access cash from the equity in your home. Working with your Cambria Mortgage Mortgage Consultant can help you crunch the numbers to see if this is the right move for you in 2020.
Home sales will continue to be impacted by the lack of supply in the market. Even with new home construction up 6% there is no match for the current demand in the near future. It could be years before we see supply catch up to the incredible level of demand. Driving some of the demand is the continual increase in rents and the fact that Generation X and Baby Boomers are staying in their homes longer. An interesting generational note is that for the first time in history, Millennials are predicted to make up more than 50% of home sales in the next year.
How Cambria Mortgage Can Help
With the limited supply and high demand, it is more important than ever to come to the table with a solid pre-approval if you are looking to purchase. With a Cambria Mortgage fully underwritten pre-approval you can be confident that your offer will stand out and get the attention of the sellers. Call Cambria Mortgage today to get started on your pre-approval with no cost and no obligation.
If you are looking to lower your rate or take some cash out of the equity you have built in your current home, there is no better time. Interest rates are low and home values are high. Now is the time to act and Cambria Mortgage will walk you through the process from start to finish. Contact our team to get the ball rolling before the ball drops!
Call Cambria Mortgage
To get started, call Cambria Mortgage at 952-942-0110 or visit CambriaMortgage.com. Our team of experts will provide personal, hometown service with sound advice and impeccable attention to detail at every step of the process.