In a recent article discussing economic growth and low interest rates, Freddie Mac projected an overall positive forecast for the Real Estate estate market in 2020, and into 2021. “Sustained economic growth, low interest rates, and a robust labor market” continue to indicate strength. Our forecast is “for the U.S. housing market to keep up momentum for modest growth in 2020 – 2021” as written in the article.
Freddie Mac stated that in the beginning of 2019 the housing market had been contracted due to the shock of high interest rates with a 30 year fixed mortgage being above 4.5%. Over the year of 2019 interest rates fell providing a boost to the market as well as job growth and low unemployment. The real estate market is predicted to continue in a similar environment providing modest growth in 2020 and 2021.
Freddie also expects mortgage rates to “continue to remain low with an average of 3.8% in 2020 to 2021.” As well the housing market should continue to be strong with homes sales increasing respectively.
This means that for both buyers and sellers 2020 and 2021 should be a strong real estate market.