What is in store for mortgage rates in 2020?
I have made predictions for years, and I have been doing just a little better than the weather man, though I was almost bang on last year, proving even a blind squirrel finds the occasional nut!!
The British Columbia Real Estate Association (BCREA) believes there will be no change in mortgage rates in 2020 and a modest increase in the economy rising up from 1.6% in 2019 to 1.8% in 2020. The bank economists are leaning towards a small decrease in mortgage rates of a quarter percent overall in 2020 and a modest increase in the economy. So I will be bold and issue a guarantee, mortgage rates will go up, down, or stay the same in 2020!
In all seriousness, I believe there will be some movement up and down next year but it will be in the quarter to half percent range and not effect the real estate market greatly. I also think we are going to continue to see house prices move upwards over the next few years as inventory numbers remain very low and demand steady.
As with any predictions there are so many factors that can alter the course of our economy, so being in the market is much better than sitting on the sidelines and waiting, or worse, renting. If you think you can time the market you likely also buy lottery tickets every week?
Thank you to everyone who has touched our business in 2019 and made it our best year ever, we truly appreciate your support and your trust. We look forward to making 2020 another fantastic year and hope we can help you achieve your goals in 2020.
Merry Christmas to all and I hope everyone takes some time to celebrate the holiday spirit with those who mean the most to you, and lend a hand to those who need it.
Daryl, Andrea, and the LendingMax team