Mortgage rate forecast for 2020: Experts predict low rates will last

The average 30-year fixed mortgage rate started 2019 at 4.68% and steadily declined before closing out the year at 3.93 percent. In 2020, rates are expected to remain mostly stable, not straying too much higher or lower from the 4% mark.

Here are responses from a range of experts predicting what will happen to mortgage rates in 2020.

Expect mortgage rates to remain low

Greg McBride, CFA, Bankrate chief financial analyst, predicts mortgage rates will stay relatively stable around 4% in 2020.

“The benchmark 30-year fixed rate mortgage will hopscotch back and forth over the 4% mark for much of 2020, remaining low enough to facilitate homebuying and providing ample refinancing opportunities on those trips below 4 percent,” he says.

Since the end of June 2019, interest rates for the 30-year fixed-rate mortgage have stayed south of the 4% mark. They hit their lowest point on Sept. 4, dropping to 3.74 percent, according to Bankrate data. These historically low rates have helped homeowners save money by refinancing and made it easier for folks to afford to buy a house.

read more at: https://www.bakersfield.com/ap/news/natalie-campisi-mortgage-rate-forecast-for-experts-predict-low-rates/article_e8d24523-a035-5686-9c25-fb91cc46de5e.html

San Diego home prices up 2.9% in a year

Home prices were up 2.9 percent annually in San Diego County as of October, part of a rising tide of nationwide price increases, the S&P CoreLogic Case-Shiller Indices reported Tuesday.

The gain was below the national average of 3.3 percent, but it still represents a reversal of fortunes for San Diego County after months of having some of the lowest price increases in the nation. Home prices were going up at annual rate of around 1 percent for the first six months of the year.

Even with the increase, which experts largely attribute to falling mortgage interest rates, it is still below the 3.8 percent annual increase recorded for San Diego County a year earlier.

read more at: https://www.sandiegouniontribune.com/business/real-estate/story/2019-12-31/san-diego-home-prices-up-2-9-in-a-year

New California housing laws 2020

An existing law that requires 90 days’ notice to renters who are evicted from a foreclosed property will stay on the books. The law was set to expire, but lawmakers made it permanent.

 

Strict new limits on rent increases will mean landlords can raise rates no more than 5% plus inflation each year. Renters in cities with existing, stricter controls will keep them, and some evictions will become harder to implement.

 

California homeowners will have more flexibility to build “granny flats,” or small housing units, on their properties.