Buying a home in the winter market has its advantages.
There is lower competition, more opportunities for price reductions, and sellers are typically more motivated to sell. All of these conditions are as likely as snowfall, year after year.
Yet, what’s not always the same every winter is the state of borrowing. Mortgage rates can be a winter wildcard. It can be difficult to predict what is going to happen with rate fluctuations and how it will impact the real estate market.
The good news for 2019, heading into 2020 is that mortgage rates continue to stay at historically low rates. According to the latest survey from Freddie Mac, the average rate for a 30-year fixed mortgage loan was down to 3.57% in October. “That’s still fall,” you may be saying to yourself. What about the real winter season? The season with boots, and hats and snow shovels?
Freddie Mac had more news for us there. In their latest housing forecast, they predicted that rates would remain within their current range through the end of this year. From their September 2019 Economic and Housing Research Forecast, they reported:
“We project the 30-year fixed-rate mortgage to average 3.7% in the fourth quarter of 2019. We project the annual average to be 4.0% in 2019 before declining to 3.8% in 2020.”
So what does that mean for your buyers? Mortgage rates are still on track to remain below 4% on average through the start of 2020. Combined with the advantages of buying a home in the winter, it could be a winning season for those willing to plow ahead.
With the current low rates and reduced competition, the only thing homebuyers will need to worry about this winter, is having the right snow shovel.