Encouraging news to all home sellers! Buyers are rapidly returning to the housing market, despite any uncertainty amid the pandemic.
Last week mortgage applications increased 6%, and the purchasing volume only decreased 1.5% relative to this time last year last year; an incredible recovery of PV, considering it dropped to 35% per annum during the last six weeks. Government purchase applications (FHA, VA, and USDA loans) are 5% higher than a year ago. This news can bring hope to anyone waiting on a home sale.
As things start edging back towards "normal", or that coined "new normal", buyers are also making a come back into real estate investment. Mortgage rates are lower than ever, plus a new desire to leave crowded urban environments is leading buyers to purchase more single-family homes! This leads us to wonder how densely populated markets are going to respond after years of people wanting to live closer to the city.
The median interest rate for 30-year fixed-rate mortgages with conforming loan balances up to $510,400 lowered from 3.43% to 3.41% as well.
In addition to all of this, loans that are still in the government's mortgage bailout are now allowed to refinance under the new lending guidelines for Fannie Mae and Freddie Mac, which have updated as part of the coronavirus relief package. The new requirement is borrows make three regular monthly payments.
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