If you're looking to buy your first home or condo next year, chances are you won't be alone in your quest to transition from renting to owning in 2020.
In fact, millennials are expected to drive the U.S. housing market forward more than ever before with large volumes expected to either purchase their first home or perhaps even relocate from urban areas to the suburbs, according to multiple economic forecasts.
While it seems like we've heard this story before, the millennial home buying movement in 2020 is expected to be fueled by the expectation of mortgage rates remaining low for the duration of the new year. According to a recent market analysis by Transunion, the number of new mortgages that will be extended to first time buyers is projected to increase by 8.3 million over the next 36 months, which could be the beginning of an upward trend over the next 3+ years. The overall analysis indicates that interest rates will remain low in 2020 as just mentioned above, but also that unemployment will continue to be near an all time low, and wage growth over inflation will be positive as well.
As for specific numbers, U. S. mortgage rates are likely to average 3.85% throughout the year with a projection of 3.88% at the highest point.
The timing is truly perfect for millennials to lead a robust housing market. The group of persons that were born between 1981 and 1997 are achieving key life “milestones” in 2020. Over 4 million of them are turning 30, a time when many people purchase their first home. The higher side of this generation will be nearing the end of their 30's which is a period when people elect to trade their condo in the city for a larger single family home in the suburbs. The same economic forecasts state that there will be attractive price-points for entry level homes in some of the largest cities in America including; Chicago, Dallas, Las Vegas, Miami, San Francisco, among others.