Predicting the Future of Mortgage Trends in 2020
It can be difficult to foresee the future in such an uncertain time, but NerdWallet took a stab at predicting the rest of 2020's mortgage trends. According to Fannie Mae, Freddie Mac, and several other data providers, the 30-year fixed rate may drop one-tenth of a percentage point from now until the fourth quarter. NerdWallet predicts that the average rate would be even lower, about 3%. A prediction prior to the pandemic, which still rings true, is a shortage of homes for sale. In May this year compared to last year, there were 20% fewer homes for sale. Read more to see what’s in store for the housing market.
In December 2019, I described 10 housing and mortgage trends to watch for in 2020. But "deadly pandemic" was missing from my bingo card. Some of the trends I predicted are irrelevant now because COVID-19 disrupted the economy.
Time for a midyear update. In a world altered by the pandemic, here are trends that mortgage borrowers, and home buyers and sellers, will confront in the second half of 2020.