Previously, we wrote about how a down spring Real Estate market may result in a busier summer market. It looks like that is proving to ring true.
With the Sunshine State opening back up and buyer confidence increasing, we are projected to head into a hot and happening summer Real Estate market. Many of the homes that were temporarily taken off the market have been put back up. The quests for buyers’ dream homes have been resumed!
Read further to find out why Real Estate experts are predicting such a busy summer.
The facts
Mortgage applications are up a whopping 8.7% since the slow down of the market two months ago, according to a survey done by the Mortgage Bankers Association.
Additionally, this survey encompasses more than 75% of U.S. residential mortgage applications and omits mortgage re-financing applications. Therefore, it is safe to say these numbers are as factual and accurate as you can get.
Danielle Hale, Chief Economist of Realtor.com® states, “This is a bit of a bigger rebound than I expected.” Hale predicts that the sales will ramp up in June and July.
Mortgage rates
According to Mortgagenewsdaily.com, the current rate for a 30-year fixed-rate home loan is 3.24%. This number has also been as low at 3.03% recently.
To put this number into perspective, the average mortgage rate just a year ago in 2019 was 4.13%. In 2018 this number was as high as 4.70%, based on a survey from Bankrate.com.
So, it is no wonder that buyers are jumping out of their seats to begin the home buying process. Job certainty has become secure again and our economy is starting to rebound. This creates the ideal foundation for both buyers and sellers to participate in the summer market.
The downside
We are starting to see positive trends in buyers gearing up again. However, that does not necessarily mean that more homes will magically become available on the market.
Even with sellers putting their homes back up for sale, there is still a supply and demand issue in the Real Estate sector right now.
Due to these lower mortgage rates, there are more buyers and not enough inventory to go around.
This housing shortage can mean that buyers may have a harder and longer time finding the right house for them. In order to avoid missing out on the perfect home for you and your family, make sure you are using a buyer’s agent that is skilled in your local market and ready to enter into a bidding war for you.
Another thing to consider if you are still nervous about making such a large purchase at this time, but are losing precious dollars on paying someone else’s mortgage, is to look into buying a starter home versus a forever home.
