When COVID-19 hit the United States, many people began to worry about the economic outlook, including the housing market. Our office was fielding inquiries from people wondering whether they should sell or buy, and whether the market is going to drop as a result of the pandemic. Surprisingly, the housing market is still pretty busy. While it is true that some buyers have lost their jobs and some sellers have been too fearful to pull the trigger on a move, properties at traditional price points are receiving 8-10 offers in a matter of hours. That’s because the mortgage rates are so low and buyers can still qualify to buy more houses now than they could if interest rates increased.
The housing market remains resilient as mortgage applications rose to 2.9% in the beginning of the month, according to a report from the Mortgage Bankers Association. The results are being compared to the week of Labor Day 2019. Purchasing a home now will give you an opportunity to get the lowest mortgage rates in history. As of this writing, the rate is at an all-time low 2.86% on a 30-year fixed-rate mortgage, and 2.37% on a 15-year mortgage, according to the latest data from Freddie Mac.
If you’re looking for a sign, then this is it – now is a great time to make a home purchase. If you have been renting for some time, you may want to consider buying a house instead, because the money you pay your landlord is basically paying someone else’s mortgage.
If you’re looking into real estate investing, we have here a step-by-step guide on how you can get started.
Worried about the downpayment? While you can get a home for little or no money down, here are tips on how to save 100k to buy your new home.
If you’re unsure about making any real estate deals at all during the pandemic, we at Broadpoint Properties, have adapted to weather the current situation and to cater to buyers and sellers. Here’s how we do socially-distanced real estate.
We hope these recent trends and data help you gain clarity to make decisions for your home purchase. If you are looking to buy, sell or rent a property around San Diego County, let us know and we’ll be more than glad to assist you.