Making a new year’s resolution to purchase a new home may seem as fruitless as resolving to go to the gym twice a week in 2020. But according to experts, the conditions for buying a home may be better this year than in recent memory.
First, mortgage rates are near historic lows. Economists had widely predicted that by 2020 rates would be teetering above 5 percent, but lenders are offering terms substantially lower than this. Less costly borrowing can help home buyers offset some of the high prices found in many Southern California housing markets. And FHA loans can give buyers the option of purchasing a home for as little as 3.5 percent down.
With conditions like these, it may be easier to buy a home in 2020 than hitting the gym on a regular basis.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.