Mortgage rates are at a historic low and are projected to remain low through the next year. This is a big incentive for homebuyers. Low interest rates means lower monthly payment or higher buying power. Homeowners who are looking to sell also have an opportunity to take advantage of those eager homebuyers.
According to FreddieMac:
“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 such low rates, buyer interest is expected to drive the housing market forward. FreddieMac notes that homebuyers are in a 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.”
Unfortunately although rates are at an all time low so is the supply of homes on the market. Housing inventory is incredibly low. There is a 20% year over year decline on available homes. As a result, buyers are having a hard time finding a home to buy. High demand and low inventory means bidding wars.
What does this mean for buyers?
It is very competitive for homebuyers at the moment. There are few homes on the market and the rates are so low. It is more affordable to own a home at the moment and as a result more people are buying. Bidding wars are happening more frequently. The best advice is for all homebuyers to get a mortgage pre-approval with DU underwriting. This helps buyers get a competitive advantage when presenting an offer.
- Call Mortgage Broker Iliana Tegov with Voget Financial Services at 954-614-9000 or email firstname.lastname@example.org. She will do a thorough full underwriting for all homebuyers. This way when it comes time to presenting an offer, all the approving process is complete and the underwriting report is available for the seller to review. This gives buyers a higher chance of their offer being accepted.
- Contact Prestige Waterfront Realty at 954-830-7000. A real estate agent will help you act quickly so you can make an offer ASAP. They will have you fill out the correct forms and make sure everything is done properly.
What does this mean for sellers?
If you are thinking of selling your home, now is the time. Homebuyer motivation is high. Selling now will help get top dollar for your home. Call PWR at 954-830-7000. Our licensed real estate agents will take all necessary precautions when showing your home. We will market your home to buyers across the country to ensure top exposure and quick/easy selling.