With 30 year Fixed Rate Mortgages available at 3.41%, is it the right time to purchase a home.
The COV-19 pandemic has undoubtedly put a slow to the pace of all businesses. Real estate and home lending has not been immune to this trend either.
The latest NAR Flash Survey Economic Pulse conducted on March 16th & 17th found that 48% of real estate agents have noticed a decrease in buyer activity due to the virus outbreak.
HOWEVER...
Mortgage rates have dipped to an all time low in recent history over the last couple of months. Especially in April and May.
30 Year Fixed Rate Mortgages reached below 3.25%
15 Year Fixed Rate Mortgages reached below 2.75%
5/1 Adjustable Rate Mortgages reached far below 3.25%
Even though the NAR survey states a solid slide in activity. The current state of rates have 45% of real estate agents state they believe the lower than average mortgage rates are bringing out the serious buyers versus tire kickers.
IS IT SAFE TO SHOP FOR A HOME RIGHT NOW?
Although it's a scary time to be out and about checking out real estate, it is still possible to do so and stay relatively safe. The industry has rapidly adapted, introducing approaches that minimize exposure to the virus.
For instance, many agents are now working remotely and conducting most of their business virtually.
While open houses or showings may not be easy to arrange because of quarantine or other safety issues, real estate listings have stepped up to the plate by offering virtual tours.
While those who are immunocompromised may want to stay home, if you're otherwise healthy, it is also still possible to see some homes in person in some parts of the country. You'll want to take some precautions before you go.
HOW ABOUT ECONOMIC CONCERNS
It is key to keep in mind that our historically low mortgage rates are going up driven by the number of people that are refinancing. Waiting too long to buy may result in missing the money saving boar.
On the other side of the coin, home buyers are probably wondering about the stability of their income as fear of layoffs loom. However, putting a property under contract now and locking in a low interest rate can give guyers some control and value at a time when states across the nation are starting to open back up.
THE TAKE AWAY?
It matters more than ever to get pre-approved for a mortgage, calculate your home budget properly and buy a home that is well with in budget. When this is all over your investment will put you in a much stronger place for recovery.
Until next time... We at Efinity Home Loans are always here to help. Feel Free to give us a call, chat in real time or submit a pre-authorization to get started.