When we think about the future, a big question that comes to mind is what will be in demand and popular next. This article will give you a few insights into this question by giving you five predictions for the most-wanted products and services in 2020.
Five Predictions for 2020
As the demand for home loans continues to rise, the market will continue to grow. With innovation in technology and a lower interest rate, more people are expected to take advantage of the home loan opportunity.
The housing market is expected to change significantly in the coming years. Although still recovering from the housing crash of 2008, the market is predicted to boom by 2020. Home buyers will be able to purchase a home with zero down payment and at a more affordable price. Mortgage rates are also predicted to go down, making it easier for people to scrape together enough money for a house.
Home Loan Trends
The home loan trends for 2020 are making it increasingly more difficult for borrowers to get a home loan. The average cost of a home loan has increased by over 275 percent since 2012 and the interest rates have significantly increased in recent years.
The first home loans will be doled out in 2020.
Trends that are likely to impact home loans in the future
On Wednesday, the FHFA (Federal Housing Finance Agency) released its 2020 Forecast for the housing market. The report outlined five trends that are likely to impact home loans in the future. They include a 30% increase in the number of Americans who want to buy homes, the number of first-time buyers who will finance their homes with a mortgage will jump from 46% in 2017 to 53% in 2020 and millennials looking for starter homes make up 29% of all homebuyers
The demand for home loans is expected to decrease in the future, but still increase. With a drop in demand, lenders will likely stop offering mortgage loans at a certain time. The average age of an individual’s home loan is supposed to increase as well.
Conclusion
Bank of America is making this announcement so that they can remain competitive and continue to grow in a changing market. They will now offer home loans for loans people are willing to take out against their homes for various reasons.
The conclusion of this blog post is to take advantage of the current low-interest rates and get a loan that pays back over time. It would be wise for people to avoid taking on too much debt, but if there is a need for a loan, it’s best to put it in a savings account where it will earn interest.