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 beausse of stringent qualifications, many homebuyer hopefuls have found it very difficult to break into the market.
That said, buyers are still cautiously optimistic about buying a home, despite continued economic uncertainties.
Homebuyers Are Hopeful Despite the Economic Landscape
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 had a profound effect on just about every aspect of the economy, though the real estate market fared quite well and continues to do so. 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 the market quickly bounced back.
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 inventory 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. 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.
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 relatively low mortgage rates we are seeing today. That said, mortgage rates have been on a gradual incline over the past year, though they still remain somewhat low compared to where rates were in 2018. As of February 7, 2022, the rate for a 30-year fixed-rate mortgage is 3.55%.
With rates at this mark, 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 12% this past week from the week before.
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 since 1992 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!