Potential homebuyers looking to settle down in 2020 should be ready to strike: Mortgage rates are low, but inventory will remain scarce. As 2020 continues to be a seller’s market, especially in the entry-level sector, people may shoulder higher costs even with the rock-bottom mortgage rates they secure thanks to inventory scarcity and a projected increase in bidding wars. Find out what other trends rank on NerdWallet’s top 10 housing and mortgage forecasts to watch in 2020.
Mortgage rates will remain low in 2020, affordable homes for sale will remain scarce, and boomers will remain in their homes and build equity that they won’t borrow from. But not everything in 2020 will be a continuation of 2019: People shopping for FHA loans might find more lenders competing for their business, and change is coming in the timeworn ways that homes are bought and sold.
In most places, it will still be a seller’s market in 2020, and first-time home buyers will especially be at a disadvantage because there aren’t enough starter homes to go around.
NerdWallet has identified the following 10 housing and mortgage trends to watch for in 2020