In the case of a base rate rise, banks will tend to raise mortgage interest rates as well as loans, pushing up the cost of borrowing money. According to the latest data from Freddie Mac, the average interest rate on a 30-year mortgage is just 3.13%—holding steady from last week and the lowest rate on record in at least 49 years.Rates on 15-year loans have also bottomed out. And slowly but surely, it is breathing new life into small towns outside of major urban hubs.”The Urban Land Institute recently named Hipsturbia as one of its top real estate trends to watch in 2020.As the report explains, “If the live-work-play formula could revive inner cities a quarter-century ago, there is no reason to think that it will not work in suburbs with the right bones and the will to succeed.”The mortgage and real estate spheres have been moving away from their manual, paper-laden processes in recent years, and 2020 will only see that trend expand further—especially as more tech-savvy Millennials enter the market.As Hundtofte explains, “In 2020, we’ll continue to see Millennials growing their share of the mortgage market, which in turn, will serve as a catalyst to lenders to continue to rapidly innovate their technology offerings to meet the expectations of an audience more accustomed to an Amazon, Venmo-like experience.”Though plenty of tech offerings already exist—from e-signing and e-notary software to fully-digital mortgage applications, automated income verification and more—Hundtofte says we’ll probably see these solutions start teaming up in the new year.“Rather than compete with each other, we’ll see companies combining technologies across the board, from startups partnering with startups to startups partnering with legacy institutions,” he says.Aaron Block, the co-founder of MetaProp—a venture capital fund focusing solely on real estate technology—says to keep an eye on the Airbnb and WeWork brands specifically in this regard.On WeWork’s recent IPO blunder, Block says, “One major positive outcome of this year's ‘DiePO’ is the plethora of ‘proptech’ innovation talent hitting the street.

builder confidence was at a 20-month high, according to the National Association of Home Builders.Still, it may not be enough to meet the needs of today’s buyers, Kushi says.“As for building new homes, builders have a reason to be cautiously optimistic, given pent up demand stemming from a strong economy, lower mortgage rates and continued wage growth,” she says. Realtor.com's updated 2020 … Here’s what they say is in store for the year to come: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. At the same time. The drop in rates caused a surge in refinancing over the last few months, and purchase activity ticked up as well.According to Odeta Kushi, deputy chief economist at title insurance and settlement services provider First American, there’s “emerging consensus” that rates will remain low next year—likely somewhere between 3.7% and 3.9%, she says. The trend has led to an uptick in “Hipsturbia” communities—live-work-play neighborhoods that blend the safety and affordability of the suburbs with the transit, walkability and 24-hour amenities of big cities.Melissa Gomez, an agent with ERA Top Service Realty in New York, has seen the trend in action.“Being based in the boroughs of NYC, I see Hipsturbia happening every day,” she said. Those clocked in at an average rate of just 2.59% this week.Despite the bargain-basement rates, though, mortgage activity actually declined in recent days. Data from Arch MI shows the chance of home price declines at a mere 11% for the next two years. More Forecast | … Housing inventory is going to remain limited for much of 2020, experts say.

Experts weigh in on what we can expect for the 2020 housing market.The 2019 housing market has been one of low rates, high demand and limited supply—particularly on the lower-priced end of the market. And interest rates and record-high homeownership tenures are a big part of the problem.As Kushi explains, “You can’t buy what’s not for sale.”“While historically low rates increase buying power and make it more likely for potential buyers to attain their homeownership dream, they also increase the risk of a long-run housing supply shortage, which we predict will continue through 2020 and possibly intensify,” Kushi says. These 2020 – 2021 mortgage rate forecasts are partly the result of actions taken by the Federal Reserve. “As first-time buyers lock-in these historically amazing rates and existing owners refinance—in droves in recent months, everyone will stay put and not sell.

In its latest “Mortgage Finance Forecast” report, issued on July 15, the MBA’s research team predicted that 30-year loans rates would average 3.2% and 3.3% during the last two quarters of 2020. Fannie Mae actually predicts rates will clock in even lower, vacillating between 3.5% and 3.6% throughout the year. September was the most volatile month for mortgage rates since the beginning of 2018 with an average week to week change of 11 basis points for the 30-year fixed rate mortgage. Though mortgage rates fluctuate based on market conditions, the average rate of the most popular home loan, the 30-year fixed, was 3.13% as of June 25, the lowest rate in Freddie Mac’s survey history, which dates back to 1971. See my current work in Forbes, The Motley Fool, Fox Business, TheI'm a freelance writer and journalist from Houston, covering real estate, mortgage and finance topics. ET ... according to this forecast. Based on the latest available data, we forecast key market trends for 2020, including home prices, home sales, housing inventory, and mortgage rates.