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.
“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):
What does this imply for buyers?
Competition is with so few houses available for sale and low mortgage rates are helping to drive affordability as 21, alluring. Obtaining pre-approved today can help you gain a competitive edge and accelerate the homebuying process, in order to rsquo;re prepared to go if you locate that perfect house you’d prefer to buy. Working quickly and economically with a trusted real estate professional will help set you in a position to act fast if you’re prepared to make your move.
What does this imply for vendors?
If you’re considering selling your property, be aware the motivation for buyers to purchase is as large as ever with prices where they are today. Selling today before other sellers come to market in your neighborhood this summer might place your home high on the list for several buyers. Homebuyers are definitely in the mood to buy, and with now ’s safety guidelines and precautions in place to reveal your home , confidence can also be on your side.
Whether you’re looking to buy or sell, rsquo & there;s great motivation to be in the home market with mortgage rates. Let’s link today to be certain you’re prepared to make your move.
This post was originally posted on Simplfy the Market