There has been a lot of talk about the economy and where it is headed in the post-Covid-19 environment, but what you may not have heard about is the state of the housing market. It turns out that now is a great time to buy a home thanks to historically low mortgage interest rates. With house prices holding steady and interest rates close to all-time lows, the dream of home ownership may be within your reach. What the Post-Pandemic Housing Market Might Look Like
Consider this: while it seems like house prices should have declined due to lack of sales activity during the Covid pandemic, the opposite haws actually happened. Recent statistics from Realtor.com show that median listing prices are 5.6% higher than one year ago, and more than a full percentage point above where they were just before the economy shut down. With a history of prices rising steadily over the past two decades, it is likely that delaying a home purchase will mean paying a higher price. That, along with such low interest rates, makes this the ideal time to buy a home.
Buying now will mean that you can lock-in the lowest mortgage rates in history! Per Freddie Mac, the average rates are 2.88% on a 30-year fixed-rate mortgage, and 2.44% on a 15-year mortgage as of the week of 8/6/2020. Just to compare – back in January, the rate on a 30-year fixed-rate mortgage was 3.72%. The difference in rates equals a significant drop in your monthly payment.
While it is possible that mortgage rates could fall even lower, that is not a sure thing. But what IS a sure thing is that interest rates in North Iowa are better now than they have ever been, meaning buying now will save you money! Jane Fischer can help you find a lender that will work with you to get the best rate possible for your dream home!