When the COVID-19 pandemic hit, panic ensued. How were we going to survive, especially in real estate! If people weren’t buying houses, surely the industry would go caput. Interestingly enough, this didn’t happen.
During this time, people continued to purchase homes and the real estate industry began to see an upswing in trends, especially when it came to “buying seasons.” One of these trends that we continue to see is low mortgage rates. Around the beginning of August, the real estate industry began to see mortgage rates as low as 3.14%. Crazy, right?!
Mortgage Rates Fall But So Does Demand
With low mortgage rates, you would think that there would be an influx of applications being filled out. Unfortunately, that’s not the case. In the same space where mortgage rates fell, purchase applications also declined as well as refinance applications. (Though, we should know that both purchase and refinance applications were much higher than they were this time last year.)
What does this tell us? All this means that although there may be a drop in demand, the low rates are pushing buyers into the market even amidst these unprecedented times we are living in.
Buyers are looking for properties with more space in suburban areas. (We’ve outlined this further on our blog highlighting small towns which you can find here). If you’re one of these buyers, it is essential to keep in mind that inventory is tight and lenders are stricter about who gets the best rates and low down-payments.
What Does This Mean For You?
It is straightforward. If you have been holding out on buying a new home, now would be the best time to jump in on that home you’ve been eyeing. These mortgage rates won’t stay here forever. With the economy being in a sort of flux, things could change at any moment and you might lose your chance on the best home deal you would ever have. Don’t let the moment pass you by because you’re hoping to get an even lower rate - inventory is low and mortgage rates are low...go now!