Buyers Increase Demand as Mortgage Rates Hit All Time Lows
Homebuyers Are in the Mood to Buy Today
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):
What does this mean for buyers?
Competition is hot with so few homes available for purchase and low mortgage rates are helping to drive affordability as well. Homes are going quickly, close to asking price or some going over asking price. In this Market, getting pre-approved to Buy 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. 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.
What does this mean for sellers?
The Sellers Market is Back. It has not been this favorable for Sellers in years. If you’re thinking of selling your house now is a good time, know that the motivation for buyers to purchase right now is as high, combined with low housing supply and mortgage rates at all time lows has put Sellers back in the drive seat. Selling now before other Sellers come to market in your neighborhood this summer might put your house higher on the list for many buyers. Homebuyers are clearly in the mood to buy now, and with technology allowing virtual showings, and following safety guidelines, and precautions in place to show your house, you can safely sell your home in this market.
Whether you’re looking to buy or sell, presently there’s a greater motivation to be in the housing market, especially with mortgage rates hovering at this historic all-time low. Let’s connect today to make sure you’re ready to make your move.