July 15th, 2020 8:30 PM by Marie Negron, Owner
In the current challenging climate, you might expect homebuying to halt, or at least slow down, along with other businesses. However, mortgage rates had other plans and now homebuyers do too. According to the latest FreddieMac Quarterly Forecast, mortgage interest rates have fallen to historically low levels this spring and they’re projected to remain low. This means there’s a huge incentive for buyers who are ready to purchase; and homeowners looking for eager buyers can take advantage of this opportune time to sell as well.
There’s a very positive outlook on interest rates going forward, as the projections from the FreddieMac report indicate continued lows into 2021:
“Going forward, we forecast the 30-year fixed-rate mortgage to remain low, falling to a yearly average of 3.4% in 2020 and 3.2% in 2021.”
With mortgage rates hovering at such compelling places, ongoing buyer interest is bound to keep driving the housing market forward. Rates also reached another record low last week, so homebuyers are in what FreddieMac is identifying as the buying mood:
“While the rebound in the economy is uneven, one segment that is exhibiting strength is the housing market. Purchase demand activity is up over twenty percent from a year ago, the highest since January 2009. Mortgage rates have hit another record low due to declining inflationary pressures, putting many homebuyers in the buying mood. However, it will be difficult to sustain the momentum in demand as unsold inventory was at near record lows coming into the pandemic and it has only dropped since then.”
There’s no doubt that even though buyers are ready to purchase, it’s hard for many of them to find a home to buy today. Mortgage rates aren’t the only thing hovering near all-time lows; homes available for sale are too. With housing inventory as scarce as it is today – a nearly 20% year-over-year decline in available homes to purchase – keeping buyers in the purchasing mood may be tough if they can’t find a home to buy.
(See graph below):
Competition is hot with so few homes available for purchase and low mortgage rates are helping to drive affordability as well. Unsure where to begin? HOMM Real Estate Services can help. We can refer you to our favorite lenders to get the pre-approval process started. Having pre-approval will help you gain a competitive advantage and accelerate the homebuying process, so you’re ready to go when you find that perfect home you’d like to buy. Moreover, talk to a real estate agent ASAP. Even if you’re not fully ready to buy tomorrow, hiring a real estate agent to start the process of looking will make it easier to make the jump when your perfect house is on the market. Working quickly and efficiently with a trusted real estate professional will help put you in a position to act fast when you’re ready to make your move.
If you’re thinking of selling your house, know that the motivation for buyers to purchase right now is as high as ever with rates where they are today. With such few competition, exemplified in the graph above, your house will stand out to buyers and rise higher to the top of the list. Homebuyers are clearly in the mood to buy, and with HOMM Real Estate Services’ safety guidelines and precautions in place to show your house, confidence is also on your side.
Whether you’re looking to buy or sell, there’s great motivation to be in the housing market, especially with mortgage rates hovering at this historic all-time low. Let’s connect today so HOMM Real Estate Services can help you make moves.
HOMM Real Estate Services, located in the Brandon, Florida area of Tampa-Bay focused to Hillsborough, Pasco and Polk Counties. As a full-service general real estate company, we specialize in general real estate, home buyers, home sellers, new home construction, rentals, tenants and landlords and property management. Learn more about Marie Negron, her team and HOMM Real Estate Services. Call 813-684-5954 or email email@example.com to get started.