It’s a wonderful time if you are currently a home-buyer! Mortgage rates have dropped, according to Freddie Mac, a mortgage loan company. Matter of fact, 46% of all of the loans that Freddie Mac had purchased in 2019 so far have become homebuyers. This is a percentage that hasn’t been seen in 20 years!
Not only are there more loans getting paid off so that consumers own homes, but according to online mortgage provider Better.com, there is also a huge influx of first time homebuyers! There has also been an increase of homebuyers by Gen Z consumers by 200% and in single female homebuyers aged between 30-40 by 500%. These numbers show that something good is going on!
The reason that homebuyers have an advantage during this time period? That question can be answered by Sam Khater, Freddie Mac’s chief economist! He stated that “The fifty-year low in the unemployment rate, combined with low mortgage rates, has led to increased homebuyer demand this year. Much of this strength is coming from entry-level buyers.” However, first time homebuyers are not the only people affected by the low mortgage drop, but homeowners who are refinancing benefit as well.
Mortgage rates have dropped down to 3.57% and this leads to many more people wanted to fix their financial situation with their home! Data provided by the Mortgage Bankers Association indicates that refinance applications are up by 163% just from one year ago!
However, one may wonder how this mortgage trend will continue. It is thought that for months to come, mortgage rates will stay in this nice area, but shortages with inventory may prevent first-time buyers from reaching their full homeowner potential.
Overall, it is an amazing time for home buyers with mortgage rates being so low! Make sure to take the opportunity to get the home you’d like while maintaining you budget!