Home Sales Up, Mortgage Rates Down

Despite the ongoing pandemic, many people out of work, and a highly contentious presidential election just around the corner, the residential real estate market is staging an astonishing rebound.

The reason: After months on hold, Americans are more confident about the idea of buying or selling a home.

Nearly two-thirds of consumers, 61%, said it was a good time to buy a home according to a June Fannie Mae housing survey of 1,000 participants. That was a 9 percentage point increase from May.

A major reason for the housing market’s rebound is the record-low mortgage interest rates, a siren song for buyers on a limited budget. Some of the most qualified borrowers are scoring rates just south of 3%, which is low enough to potentially shave more than a hundred dollars off a monthly loan payment and tens of thousands of dollars off the life of the mortgage.

The average mortgage rate fell to 3.03% for 30-year fixed-rate loans in the week ending July 9, according to Freddie Mac. That’s the lowest they’ve been since Freddie began tracking rates in 1971.

The low rates may also make it cheaper to buy than rent in some markets—provided buyers have pulled together the down payment, says economist Gay Cororaton, director of NAR’s housing and commercial research.

The news continues to be good for those who want to buy a new home, upgrade to a larger home or refinance their current mortgage.

We are here to help you navigate the possibilities. Reach out today for a free home financing consultation.