Mortgage rates won’t go as high as expected

WASHINGTON – May 23, 2019 – This year’s borrowing costs will likely be lower than originally predicted, according to an updated forecast from Freddie Mac.

The GSE recently downgraded its forecast for the 30-year fixed-rate mortgage, projecting it will average 4.3% in 2019 – below last year’s average of 4.5%.

In addition, Freddie Mac economists predict only a small average rate increase in 2020, with 30-year fixed rates averaging 4.5% next year.

“The combined positive impact of low mortgage rates, a strong labor market, low unemployment and modest wage growth supports our forecast for a steadily growing housing market in 2019,” Freddie Mac says in its May 2019 Forecast report.

 

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