The recent health crisis has wreaked havoc on the economy over the past few months. And even though it may have scared many sellers and buyers from making any moves in the housing market for a short period of time, it looks like the real estate market in WA, ID, OR, and CO, as well as across the nation, has picked up quite a bit.
In fact, the housing market is very healthy right now. Mortgage applications are very high right now, perhaps because borrowers want to take advantage of the incredibly low interest rates that are being offered right now. In fact, mortgage interest rates for 30-year fixed-rate mortgages have hit an all-time low eight times so far this year as of early August 2020, according to Freddie Mac.
And now, according to a recent study, it looks like homebuyers are excited about buying a home this year. The coronavirus pandemic does not appear to have kept buyers in hiding any longer, and now they’re coming out of the woodworks to search for a home and take out a mortgage to finance this big purchase.
Study Shows Buyers Are Optimistic About Buying a Home in 2020
More specifically, a recent study from HarrisX shows the current health crisis isn’t slowing down today’s homebuyers. Consumers are still optimistic about buying a home in the current environment.
When asked about buying a home, more people are feeling great about this decision and many do not feel as though COVID-19 has any effect on their decision to buy a home.
Here are some of the numbers gathered by the study:
- 34% – Share of consumers who are much more optimistic about buying a home.
- 21% – Share of consumers who are somewhat more optimistic about buying a home.
- 33% – Share of consumers who believe there is no impact on their decision to buy a home.
- 10% – Share of consumers who are somewhat less optimistic about buying a home.
- 2% – Share of consumers who are much less optimistic about buying a home.
When it comes to how quickly the consumers polled want to make their home purchase happen, here are the numbers gathered:
- 41% of homebuyers are accelerating their purchasing timelines today.
- 15% are looking to buy later.
- 44% report no change in their intentions to buy a home.
When it comes to saving money to buy a home in order to put more money towards a down payment, here are the numbers collected:
- 63% of consumers are saving more money.
- 12% of consumers are spending less because their income dropped as a result of the pandemic.
- 25% of consumers are earning the same amount of money but are spending more.
Low Mortgage Rates Fueling Demand Among Buyers
As mentioned above, mortgage rates are their lowest right now, sparking more interest among buyers across the country. With a lower interest rate comes less money paid out for the mortgage over the life of the loan. This translates into a mortgage that’s much more affordable for buyers.
As of the week of August 10, 2020, the rate for a 30-year fixed-rate mortgage is 2.88%. For comparison purposes, rates were 3.60% the same time last year, and 4.94% in November 2018. This shows you how far mortgage rates have dropped over a nearly two-year span.
In this low-rate environment, it makes sense for would-be buyers who may have been on the fence about buying a home to lock in at today’s low rates and keep tens of thousands of dollars in their pockets. And it seems we’re seeing this come to fruition thanks to these extremely low rates.
Looking to Apply For a Mortgage?
If your needs have changed recently and you’re thinking of making a move, taking advantage of today’s low mortgage rates and any savings you may have accrued while sheltering in place is an opportunity you won’t want to miss.
Do you have questions about home loans? Are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington serving the entire state, as well as Oregon, Idaho, and Colorado. We offer many mortgage programs to buyers all over the Pacific Northwest. Contact us today with any questions you have about mortgages.