Millennials Will Spur Demand In 2020

Dated: January 16 2020

Views: 404

A new year typically means change is near, but that may not be the case with the housing market. According to most experts, 2020 will play out the same way 2019 did with low mortgage rates and tight inventories across the nation.

Rates dipped last spring and summer, and as we enter 2020, they're holding steady in the high 3s. That's fabulous news for buyers with good-to-great credit scores. Fannie Mae predicts the lowest rates, with a 2020 average of 3.6 percent, while other analysts are forecasting them to max out at 3.85 percent.

With historic low inventory predicted in the coming year, buyers should get pre-approved now for a mortgage loan, so they can get ahead of their competition. The largest population group in the country will turn 30 in 2020. In total, 4.8 million millennials are projected to apply for home loans. That makes up more than half of all mortgages in the coming year.

We expect about one in four offers to face bidding wars in 2020, compared to only one in 10 in 2019." said Redfin Chief Economist Daryl Fairweather. "Properties may take longer to sell, but as the market moves toward a more balanced scenario, sellers who adjust to local market conditions can expect to benefit from continuing demand."

Homeowners are also staying in their homes longer than they were in years past. According to experts, they're staying an average of 13 years. That's up from just 8 years in 2010.

Refinancing also surged in 2019. According to Mortgage Reports dot com, "Refi activity clocked in at 344 percent higher than a year before and Freddie Mac predicts it will continue for at least a year." Refinancing will take up a third of all mortgage activity in 2020. 


Blog author image

Joseph Versage

Joe Versage is a former TV sportscaster who uses his competitive nature to win deals in real estate. As founder of the Versage Group, Joe serves residential realty clients in Northern Virginia and ref....

Latest Blog Posts

30 Year Rate Plunges To All Time Low

Stop the Presses! America's Long-Term Mortgage Rate isn't just low. It tumbled to its lowest point in history.On Thursday, March 5, the 30-year mortgage rate fell to 3.29%, an

Read More

Millennials Will Spur Demand In 2020

A new year typically means change is near, but that may not be the case with the housing market. According to most experts, 2020 will play out the same way 2019 did with low mortgage rates and tight

Read More

Mortgage Rates Fall To Largest Single Week Decline In Over A Decade

This column was purposely written on the last day of March, so homebuyers would not take it as "Fools Gold" on April 1st. The truth of the matter is mortgage rates have fallen dramatically and

Read More

Consultation Is Key Before Home Tours

"Don't put the cart before the horse." It's an expression heard time and again when people do things out of order. It's also something Realtors say when homebuyers wish to tour listings before they

Read More