Other factors that will play a significant role in the 2020 real estate landscape will be the low interest rate market.
A recent article in Housingwire identified that the average rate for a 30-year fixed mortgage was 3.7%. This compares with the 4.8% rate recorded exactly one year prior based upon Freddie Mac data. That is over a 25% drop in interest rate. Some are even indicating that rates may continue to set new lows based upon a Fannie Mae forecast.
The Fannie Mae report projects that the fixed-rate most likely will come in at 3.6% in 2020. This would represent the lowest annual average ever recorded, dating back to 1973, 46 years ago. That represents a period time that included six market crashes or corrections. Over that 46 year period, mortgage rates have gone between 16.3 in 1981 to a high of 18.6 in the mid-1980s.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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