Good news for the real estate market! the average 30-year fixed-rate mortgage has hit the lowest point in 50 years! dropping to a record 3.29% this week. As a plus, mortgage applications have increased 10% the past week in comparison to a year ago.
This fact indicates that the housing market is going strong and will be a positive influence in the U.S economy. Besides, new construction is strongly increasing and selling well despite the low inventory.
Average fixed-rate mortgage for 30, 15 and the 5 years are at very low points, as the graph shows. These results are due to the concerns of the coronavirus, according to experts. The lower rates will encourage potential buyers into purchasing property. The downside is that chances are rates will rise in the near future as quickly as they dropped.
Experts say that the risk on the real estate market seems to be at low at the moment, based on the path of the spread between 30-year mortgage rates and the 10-year Treasury.
Real estate agents agree that buyers are currently motivated in investing in property, despite the low inventory across the country, meaning that property is selling fast.
Our advice to homeowners is to sell as soon as possible, this will benefit the market adding inventory, therefore, probabilities on a fast sell are high which is every seller's dream!
If you are interested in selling or buying a property in this favorable market, please reach out to us and we will gladly assist you!