The average rate on the popular 30-year fixed mortgage fell Friday morning to 3.23%, an 8-year low
The yield on the benchmark 10-year United States Treasury bonds fell to a record low of 1.16 percent in trading Friday morning, down from 1.9 percent at the start of the year and 2.7 percent one year ago.
Look at it this way: One year ago, the short-term interest rate that the Fed uses to guide the economy was above 2.25 percent. Last summer and fall,
as trade wars and a slowing global economy, appeared to threaten the American economy, the Fed cut that rate three times, to its current level of just above 1.5 percent. I
And according to Fannie Mae, Freddie Mac, The Mortgage Bankers Association and National Association of Realtors, they are ALL projecting that MORE homes will be sold in 2020 than were sold in 2019.
In fact, Realtor.com states “In 2020, we expect inventory to struggle to grow and could INSTEAD reach a historic low level.” We continue to see months of inventory go down nationally.
Remember, when you have lower supply and a higher demand that’s when you see prices start to increase and experience bidding wars etc. Just like we are seeing here in Eugene and Springfield Oregon.
Bottom line buyers and sellers, we are in a very strong real estate market. Don’t be so hasty to listen to all the “hype” about a recession, look at the Facts and what the Experts are projecting.