Historically low mortgage rates, booming home price growth, inadequate inventory levels, and debates about crumbling affordability ruled the 2019 housing market. As the new year draws closer with rumors of a global recession and uncertainty generated by an impending election, one can imagine just how wild of a ride 2020 could be.
National Association of Realtors Chief Economist Lawrence Yun said rates could jump as high as 4 percent for a few weeks next year, but an overall healthy economy coupled with a low recession risk will keep mortgage rates stable, increasing buyers’ housing budgets.
Many economists expect inventory levels to worsen in 2020, with some expecting it to take years for the supply of homes to reach adequate levels.
Minimal impact from the 2020 election
As crazy and anxiety-inducing as the current election cycle is, economists aren’t worried about that anxiety pushing large groups of homebuyers to sit on the sidelines in the upcoming year.
While it could have a temporary effect, it's not widely expected to influence buyer and seller behavior.