Summary: Despite the current health crisis affecting the nation, homebuyers are still somewhat hopeful about being able to find and buy a home in WA, OR, CO, or ID in 2020. This article will go into more detail about this.
With housing prices having increased quite a bit in markets across the US over the past year and mortgages being somewhat challenging to get approved for beacuse of stringent qualifications, many homebuyer hopefuls have found it very difficult to break into the market.
Homebuyers Are Hopeful Despite the Coronavirus Pandemic
Particularly after the housing market crash of 2007-2008, mortgage lenders become much more stringent about who they lend to in an effort to avoid getting stuck with foreclosed properties.
But since then, the market has gradually strengthened, with prices of homes steadily increasing over the years. And it looks as though the tides have changed.
But then crisis struck. The COVID-19 pandemic has had a profound effect on just about every aspect of the economy, including the real estate market. For a few weeks, activity seemed to stall as many sellers chose to hold off on listing their homes and buyers were a bit hesitant to visit other people’s homes ni search of a new house.
But it seems as though buyers are increasingly optimistic about the real estate market in WA, ID, OR, and CO. In fact, more and more abuyers are returning to the market. And as a result, there is a shortage of invesntory to meet this growing demand.
Even buyers who may have put a hold on the home search process still say that they plan to get into the market eventually this year as the crisis dies down. And one thing that is keeping them in the game is virtual tours. In fact, more than half of homebuyers are turning to online and virtual tools to hunt for their next home.
While COVID-19 may be an influential factor for some buyers, for others, it’s not having much of an effect at all on their intentions to buy a home. According to a survey recently conducted by Zolo, buyers still have intentions of buying a homes, despite higher unemployment and uncertainty in business.
Related: Colorado Housing Forecast
Low Mortgage Rates Encouraging Buyers
One positive thing about the housing market for homebuyers are the incredibly low mortgage rates we are seeing today. For the past year-and-a-half, mortgage rates have been on a steady decline, and they’ve just recently hit an all-time low. As of May 29, the rate for a 30-year fixed-rate mortgage is 3.15%. That’s a siginificant difference from where rates were just last year.
With rates this low, buyers are being given more incentive to get into the market. Low interest rates can save buyers tens of thousands of dollars in interest over the life of their home loans. As such, many buyers are looking to take advantage of this, and are applying for mortgages to buy a home as a result.
According to the latest weekly survey by the Mortgage Bankers Association (MBA), mortgage applications increased 2.7% this past week (May 29, 2020) from the week before, a trend that has been seen fopr the past few weeks, despite a few dips here and there.
Related: Washington Housing Forecast
In Need of a Mortgage to Finance a Home Purchase?
If you have intentions of buying a new home in Washington state, Oregon, Colorado, or Idaho sometime this year, call Sammamish Mortgage. Our team of mortgage experts has been in the business of offering mortgage programs for many years and we would be happy to help you out. Get in touch with us at any time and we’ll assess your particular situation right away. Call Sammamish Mortgage today!