The Good News
The latest report, released in June, reports a record 71% drop in mortgage rates in comparison to last year. If you still have a steady job and a good credit history, now is the perfect time to buy with the all-time low rates since this may never happen again.
To be considered the “perfect candidate,” your credit score would need to be above 700 — between 765 and 850, to be exact. If it is below 765, but within the 700 region, you can still be a potential candidate for your desired property. This is important because it helps realtors and finance companies know if you are responsible enough to pay a 15 or 30-year mortgage loan consistently.
The housing market initially declined during the pandemic due to the regulations that took place for social distancing and quarantine. However, ever since lockdowns have been lifted, more home buyers are taking advantage of the low prices for properties. Real estate experts advise closing sales as soon as possible because of competitive rates and candidates who want to turn the available properties into long term homes.
With the spike in attractive low-figure mortgage loans, it’s not surprising why people are shocked to see the percentage change from last year: the last time rates were so low was in 1971.
Looking to the Future
As talk of a global second wave of COVID-19 increases, so do the calls that the housing market will die out by wintertime, resulting in fewer sales. The best time to take advantage of property buying and selling, along with the low mortgage rates, is during the summer season while restrictions are slightly eased. There are more property listings available and a higher demand to buy.
Even though there are good signs of the economy rebounding through the property market, there is an uncertainty in the air, since there is no indication as to whether this will continue to develop or not.
Freddie Mac even notes that while their predicted future for the housing market is “cautiously optimistic,” the overall economy is “much more uncertain than usual.” That being said, the property market was already facing a short supply pre-pandemic, and this year has seen a 15% decrease in sales.
An economic crisis has taken hold, both in the US and in countries worldwide. However, while some industries may face disadvantages for consumers and citizens, positive advantages such as a cheap property market can be of great use. It is uncertain where the pandemic will lead the country next, but consumers can, at the very least, make do with what the economy is offering today.