Even in the midst of this COVID-19 pandemic, people are still looking to buy a home. And lenders are still originating purchase mortgages. There are new ways to view homes now and lending restrictions that are making it harder for first-time homebuyers to get into the market. Even with these changes, cautious optimism remains for those who are looking to get into a new home in 2020.
Many economists believe that once the economy gets back up and running, the housing industry will see a boom in both sellers and buyers. Home prices are not going to fluctuate down from their current levels. Mortgage rates are going to remain low for the entire year and into 2021, making it more affordable for people to get into homes. The typical boom in the Spring housing market is now pushed to late Summer and early Fall. It will be interesting to see how this plays out.
There are some “doom and gloom” numbers at this point that does not support the above statements that the home buying market is going to ramp up in the second half of this year.
The Fannie Mae Home Purchase Sentiment Index fell 11.7 points to 80.8 in March. That is its lowest reading since December 2016. The National Association of Realtors released a poll that found 90% of member respondents cited decreased homebuyer interest.
If you are looking to buy a home or sell your current property, we at Residential First are still able to help you. Please reach out to us for a mortgage rate quote and an idea of where the current market is to make the most informed decision for your future.
Times are changing but we are ahead of the changes. We make it easy for you to navigate these volatile waters.