The first half of the year should present home buyers with a good opportunity, coinciding with the traditionally robust spring selling season for homes.With the Fed expected to hold rates steady for the year, borrowers with HELOCs are not likely to get any more breaks on their payments. All Rights Reserved. Following a year of declining interest rates, 2020 looks to be a year of stability, with fewer economic risks and low inflation giving the Federal Reserve little reason to shift interest rates. goal is to help you make smarter financial decisions by providing you We follow strict guidelines to ensure At Bankrate we strive to help you make smarter financial decisions. accurate and unbiased information, and we have editorial standards And that rivalry will continue furiously over the coming year.“Competition for consumers’ cash will remain heated with high-yield savings accounts clinging to 2 percent most of the year before posting a late year burst to 2.25 percent,” says McBride.Those high-yield rates are a far cry from McBride’s expectations for the national average, though: a mere 0.12 percent for savings accounts and 0.23 percent for money market accounts.While savers are catching a break now, it may only be a pause before a renewed decline in rates, if the economy worsens.“There’s not much improvement in store for savers in 2020 and there is definitely the risk that any economic deterioration would push yields sharply lower,” says McBride.With some uncertainty in the direction of rates, savers might consider an investing strategy that gives them flexibility.
right financial decisions. © 2020 Fortune Media IP Limited. So use this forecast and consider where we are in the economic cycle – with an expansion that’s now a decade old and the economy at or near full employment – to gauge the money moves you need to make and when. The offers that appear on this site are from companies that compensate and comparison service. Dr. Bill Conerly; historical data from Federal Reserve. confidence. staff is objective, factual, and not influenced by our may impact how, where and in what order products appear within All Rights Reserved. where products appear on this site. “Introductory offers will come and go, and that is what will impact the national average.”And new borrowers should have no problem accessing their home equity either, with a strong housing market and steady economic growth, says McBride.While low rates may not encourage borrowers to pay down their loans, it may make sense to do so sooner rather than later, because the current “Goldilocks moment” won’t last forever.“With rates holding steady and the prospect of either higher inflation or the winding down of a long economic expansion, this represents a Rates on variable credit cards are likely to remain just where they are. Our award-winning editors and These rates are keyed to the prime rate, and with the Fed expected to hold its benchmark rate even, rates aren’t poised to move much. thoroughly fact-check editorial content to ensure the information our content is honest and accurate. Expect lenders to become more discerning as the economy nears a top and they separate weaker credit profiles from stronger.A great first step to getting a better rate is improving your credit score, but also make sure you’re It’s important to have a sense of which way the economic winds will blow so you can position yourself to take advantage, or at least minimize any negative impact. While we adhere to strict every financial or credit product or service. We are an independent, advertising-supported comparison service. Here’s how much he’s worthStimulus deal update: With the Republicans’ latest offer, the parties are $900 billion apartJPMorgan says investors should prepare for rising odds of a Trump 2020 winOne university may have the best COVID testing operation in the U.S.—and tests students twice a week you’re reading is accurate. continually strive to provide consumers with the expert advice and been helping you master your money for over four decades. Our editors and reporters