Is Now the Time to Buy a Home?
You may be surprised to learn that now could be the perfect time to purchase a home. Read on to learn why.
Was one of your big plans for 2020 to purchase a new home? Even though this year has been a whirlwind that disrupted daily routines and goals, it might come as a surprise that now might still be one of the best times to buy a house.
Let's explore some of the reasons you may want to consider making the move in current market conditions.
Mortgage rates are at an all-time low
If you have been paying attention to interest rates over the course of the year, you will have noticed that they continue to remain low. The most recent data from the Mortgage Bankers Association (MBA) shows that for the week of 9/25, the interest rate for a 30-year fixed-rate mortgage was 3.05, and only 2.65 for a 15-year fixed-rate loan. Make sure to check their website weekly for more updated rates.
While it's predicted by multiple financial analytics that interest rates will remain low and stable in the coming months, if there's anything we have learned from this year, it's that nothing is for certain. If you're looking to purchase a new home or refinance, now is a good time to take advantage of low mortgage rates and lock in your interest for years to come.
Interest rates are at an all-time low, it might be the perfect time to take out a mortgage.
Home prices are continuing to increase
If you've done some browsing of your local real estate listings, you may have seen that property prices are continuing to increase. Forbes pointed out that if you're hoping to receive a deal on a home after the COVID-19 pandemic, you would be better off making a purchase now . One would think that a decrease in demand would lower list prices, but that's not the case. As the business news source summarized, median list prices are actually a full percentage point higher than they were before the coronavirus pandemic.
With this being said, the low mortgage rates can help offset the higher housing prices. Additionally, if you're selling your current property, you can likely increase its listing price. With fewer houses currently on the market, it's possible to quickly sell your home at a higher price.
Real estate agents are following the proper precautions
You may be nervous about what house hunting looks like during a pandemic, but many real estate agents have adapted their procedure to accommodate new rules and regulations. The National Association of Realtors released their Coronavirus: A Guide for REALTORS that responded to frequently asked questions and provides guidance on best practices for selling homes under the current circumstances.
It recommends that all Realtors follow state guidelines for social distancing and reduce the number of individuals who can come to an open house. This is good news for homeowners, as they can set up a private appointment for a showing and safely take their time looking at a property.
If you're looking for a loan* for your new home, Vectra Bank is here to help. Contact your local representative today to discuss options for your mortgage.
*Credit approval required. Terms and conditions apply. See banker for details. Equal Housing Lender. NMLS #467014