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Debbie Grigg

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Homebuyers Are in the Mood to Buy Today

June 23rd, 2020


Homebuyers Are in the Mood to Buy Today | Simplifying The Market

According to the latest FreddieMac Quarterly Forecast, mortgage interest rates have fallen to historically low levels this spring and theyre projected to remain low. This means theres a huge incentive for buyers who are ready to purchase. And homeowners looking for eager buyers can take advantage of this opportune time to sell as well.

Theres a very positive outlook on interest rates going forward, as the projections from the FreddieMac report indicate continued lows into 2021:

Going forward, we forecast the 30-year fixed-rate mortgage to remain low, falling to a yearly average of 3.4% in 2020 and 3.2% in 2021.

With mortgage rates hovering at such compelling places, ongoing buyer interest is bound to keep driving the housing market forward. Rates also reached another record low last week, so homebuyers are in what FreddieMac is identifying as the buying mood:

While the rebound in the economy is uneven, one segment that is exhibiting strength is the housing market. Purchase demand activity is up over twenty percent from a year ago, the highest since January 2009. Mortgage rates have hit another record low due to declining inflationary pressures, putting many homebuyers in the buying mood. However, it will be difficult to sustain the momentum in demand as unsold inventory was at near record lows coming into the pandemic and it has only dropped since then.

Theres no doubt that even though buyers are ready to purchase, its hard for many of them to find a home to buy today. Mortgage rates arent the only thing hovering near all-time lows; homes available for sale are too. With housing inventory as scarce as it is today a nearly 20% year-over-year decline in available homes to purchase keeping buyers in the purchasing mood may be tough if they cant find a home to buy (See graph below):Homebuyers Are in the Mood to Buy Today | Simplifying The Market

What does this mean for buyers?

Competition is hot with so few homes available for purchase and low mortgage rates are helping to drive affordability as well. Getting pre-approved now will help you gain a competitive advantage and accelerate the homebuying process, so youre ready to go when you find that perfect home youd like to buy. Working quickly and efficiently with a trusted real estate professional will help put you in a position to act fast when youre ready to make your move.

What does this mean for sellers?

If youre thinking of selling your house, know that the motivation for buyers to purchase right now is as high as ever with rates where they are today. Selling now before other sellers come to market in your neighborhood this summer might put your house high on the list for many buyers. Homebuyers are clearly in the mood to buy, and with todays safety guidelines and precautions in place to show your house, confidence is also on your side.

Bottom Line

Whether youre looking to buy or sell, theres great motivation to be in the housing market, especially with mortgage rates hovering at this historic all-time low. Lets connect today to make sure youre ready to make your move.

Content previously posted on Keeping Current Matters

Disclaimer : The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Houston Association of REALTORS®

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