Is Now the Best Time to Buy a Home?

While there is no doubt that the US Economy has experienced quite a few changes within the past month due to the ongoing COVID-19 Pandemic, the Housing Market is one of the few industries left relatively unscathed. The few changes that have occurred in the Housing Market actually create more favorable conditions for home buyers – the main change being Mortgage Rates.

On March 5, 2020, the research team at Freddie Mac reported that the average rate for a 30-year fixed mortgage dropped to an astoundingly low 3.29%. That is the lowest it has been in the nearly 50-year history of that particular rate survey.

From a borrowing standpoint, home buyers who purchase a home soon will be taking advantage of some of the lowest rates in history!

Mortgage Rates Forecast for Spring 2020

According to The Federal Home Loan Mortgage Corporation in March of 2020:

“The average 30-year fixed-rate mortgage hit a record 3.29 percent this week, the lowest level in its nearly 50-year history … Given these strong indicators in rates and sales, as well as recent increases in new construction, it’s clear the housing market continues to be a positive force for the broader economy.”

The charts below show mortgage rate trends over the past 12 months as well as from the past 50 years. As shown by the data, Mortgage Rates are at an all time low, making the real estate climate much more beneficial for home buyers.

Chart: Average 30-year mortgage rates over the past 12 months. Source: PMMS

Chart: Average 30-year mortgage rates since 1971. Source: PMMS.

How the Housing Market has Responded to Coronavirus Concerns

Some Americans are concerned that the Coronavirus could slow down the housing market. While we cannot speak for the future, we can confidently say that so far this has not occurred. The Federal Home Loan Mortgage Corporation has reported that home loan applications actually have increased by 10% last week and are “showing no signs of slowing down”.

With all that being said, is now a good time to buy a home in the United States? From a borrower standpoint, the answer is a resounding yes. Mortgage rates are at an all time low as of March 31, 2020. If buyers opt for a fixed-rate loan, this gives home buyers the opportunity to capitalize on a historically low rate and lock it in for as long as they keep the same mortgage loan. We do not have a crystal ball to see how interest rates will behave from one month to the next with the current state of our economy, which is why a sense of urgency among those considering buying a home may be necessary.

Our team at Slater Realty Group has been in the business of helping people find their dream home for 17 years and can help interested potential home buyers capitalize on low mortgage loans. Schedule a virtual tour with us today!

Sooner or later you’ll call Jim Slater!