2019 was a year filled with uncertainty for our nation’s economy. If you were one of the many who began to slow down your investing and speed up your savings in preparation for an economic storm, you are not alone.
We had several predictions of an impending recession in 2020, while other economists projected a continued economic incline for at least the next year. Now that we have closed the year out and began the first quarter of 2020, the dust has settled and we are starting to see where we truly stand as an economy.
“The current economic expansion shows no obvious signs of stalling. Economists in general expect 2020 will see another year of growth, even if not quite so robust as in 2019.” -USA Today
If you’ve been tossing around the idea of investing in Real Estate this year but have been hesitant to pull the trigger, here are a few facts to consider…
1. Across the nation, we are experiencing historically low interest rates
Mortgage rates currently sit at 3.75%, according to Freddie Mac’s most recent numbers—nearly a 1% difference from the monthly average a year ago.
According to Odeta Kushi, deputy chief economist at First American Title, there’s “emerging consensus” that rates will remain low next year—likely somewhere between 3.7% and 3.9%, she says.
Forecasts from Freddie Mac and the Mortgage Bankers Association back this up, both predicting 2020 rates within this range. Fannie Mae actually predicts rates will clock in even lower, vacillating between 3.5% and 3.6% throughout the year. – Forbes
2. Unemployment rates continue to drop to record lows
The unemployment rate fell to 3.6% in May 2019, which was even below estimates. – Chicago Fed
3. Continued economic growth is predicted through 2020
According to this year’s AOS consensus forecast, the economy is expected to grow at a solid but moderate pace in 2019 and 2020. The unemployment rate is anticipated to remain below 4% through the end of 2020. The housing sector is predicted to improve, mostly due to a strong job market and low lending rates. – Chicago Fed