In the last month, mortgage rates have fallen to their lowest monthly averages in more than three years, and economists predict they’ll stay there well into 2020—and even possibly lower.
The lower rates are translating into savings for home buyers. For example, the average borrower taking out a $300,000 mortgage is unlocking savings of about $225 on their monthly payments, or about $2,700 per year, CNBC reports. Freddie Mac economists predict that 30-year rates will average 3.7% in the fourth quarter of 2019, Fannie Mae predicts rates to average 3.9%, and the Mortgage Bankers Association is forecasting a 3.8% average.
Next year, according to Fannie Mae, rates could drop as low as 3.4%.