This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. Please submit your questions to him via email for response in future columns. Enjoy!
Question: Do you expect interest rates to remain low in 2020?
Answer: Mortgage rates increased sharply in 2018, peaking at 7+ year highs in the fall of 2018, and most experts expected that trend to continue into 2019 and for 30 yr rates to clear the 5% mark for the first time since spring 2010. However, changes in economic policy and financial markets pushed rates down at the end of 2018 and throughout 2019, coming close to all-time lows in the 2nd half of 2019.
Average 30 yr Fixed Mortgage Rate Since 1971
Average 30 yr Fixed Mortgage Rate Since 2010
Rates in 2020+
The Mortgage Bankers Association and Freddie Mac each predict that rates will remain low, right around current levels, through 2021 with an average 30 yr Fixed Rate hovering around 3.7-3.8% through that period. The Mortgage Bankers Association predicts that rates won’t start increasing until 2022, when they’re predicting the average rate to increase modestly to 4.1%.
If these projections are accurate, it should support strong price growth over the next few years in Arlington, Northern Virginia and the greater D.C. area.
However, keep in mind that just over 12 months ago, most experts predicted that mortgage rates would be over 5% by 2020 and, according to Freddie Mac, the average 30 yr Fixed Rate last week was 3.64%. Changes in the global or U.S. economy, the election, and the stock market can all change the course of rates in 2020 and beyond.
Lender Advice
If you’re considering purchasing in 2020, I wrote a column a few years ago about the value of a good lender that I’d encourage you to review. If you’d like to talk to somebody, I suggest reaching out to Jake Ryon of First Home Mortgage at [email protected].
If you’d like to meet to discuss buying or selling in the area, don’t hesitate to reach out to me at [email protected].
If you’d like a question answered in my weekly column or to set-up an in-person meeting to discuss local real estate, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at www.EliResidential.com. Call me directly at (703) 539-2529.
Eli Tucker is a licensed Realtor in Virginia, Washington D.C., and Maryland with RLAH Real Estate, 4040 N. Fairfax Dr. #10C Arlington, VA 22203, (703) 390-9460.
Recent Stories
Good Friday evening, Arlington. Let’s take a look back at today’s stories and a look forward to tomorrow’s event calendar. 🕗 News recap The following articles were published earlier today…
An explosives detection K-9 celebrated his retirement at Reagan National Airport today. Messi, an 8-year-old yellow lab, was feted this morning in the historic Terminal 1 lobby with a surprise…
Walk to Lee Heights shops from 1930s Tudor on beautiful terraced lot
Arlington’s response team for people in mental health and substance use crises is on track for a substantial buildout. An additional $478,286 in federal funds would allow Arlington to hire…
The Award is available to recent high school graduates and non-traditional students (see the application for more details). Each recipient may be awarded up to $20,000. Applicants are required to submit an online application form as well as a short video application.
The applicant must be an Arlington resident pursuing a career or technical education accredited program, within a high-growth career, that will be completed within two years.
The careers and programs include, but are not limited to:
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Audio, Video, and Sound Engineering Technicians
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Broadcast Technicians
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Commercial Drivers
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Culinary Arts
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Early Childcare Education
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Healthcare
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Information Technology and Computer Science
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Manufacturing and Skilled Trades (including welding, auto and aviation mechanics and technicians)
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Public Safety
Unlike our competitors, Well-Paid Maids doesn’t clean your home with harsh chemicals. Instead, we handpick cleaning products rated “safest” by the Environmental Working Group, the leading rating organization regarding product safety.
The reason is threefold.
First, using safe cleaning products ensures toxic chemicals won’t leak into waterways or harm wildlife if disposed of improperly.
Second, it’s better for you and your family. Fragrant chemicals in surface cleaners can expose you to a similar amount of pollutant particles as a busy city road, New Scientist reported.
ACFCU’s Free Homebuying 101 Webinar: Steps to Getting Pre-Approved
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Sweeney Todd
A victim of a gross injustice that robbed him of his wife and child, Sweeney Todd sets about exacting a terrible revenge on society.
