Hello everyone and welcome back to BGTV’s Market Minute!
We have great news to report: the strong labor market along with low rates should keep the positive momentum alive in 2020.
Unemployment is currently at a 50 year low with expectations for the index to push even lower. Freddie Mac recently reported the 30yr fixed-rate mortgages are at 3-year lows while mortgage activity continues to increase. In addition, the Census Bureau announced the U.S. homeownership rate rose to 65.1% at the end of Q4 2019, which is the highest since the end of 2013.
And more… the New York Fed reported that $750B in new mortgages were originated in Q4 2019 more than any other quarter since Q4 2005. In the first couple weeks of February, we’ve seen the demand significantly increase and the expected market time for homes to go under contract fall.
In summary, jobs buy houses, not low rates. As we move into 2020 we have both a strong labor market and historically low rates.
Now is a great time to sell or buy!
Thanks for joining us and see you next time.