Article Credit: Bay Equity Home Loans Mortgage Newsletter
The coronavirus crisis has turned everything upside-down over the last month or so, creating uncertainty in our personal, professional and financial lives. All indications are the social distancing measures instituted to slow the spread of the virus around the globe will be in place for most, if not all, of the busy spring season.
An economic storm is blowing, impacting stocks, bonds and jobs, and even sending mortgage interest rates into flux. However, most housing analysts believe the rates will eventually calm and remain at or near historic levels throughout this strange new phase. Does that mean it’s a good time to buy a home?
The coronavirus is a bit of a wild card. Some home shoppers could hold off on searching for a home, at least in the short term. Home buying might move to the back burner when you’re worried about your health. Job losses may affect financial bottom lines.
America seemed poised for a sizzling spring season in the months leading up to the outbreak. With with interest rates so low, the refinance market went bananas, and up until March, sales were going strong.
If the impact of Covid-19 induces even a minor recession, it could put a damper on demand, and possibly even slow price gains. But analysts believe any effect on the home market will be short-lived.
Typically, the housing market isn’t affected much in times of economic trouble, because people don’t buy houses purely as an investment. Unlike many other purchases, housing is a basic need.
Today’s buyers are swayed by the other benefits of homeownership: Control and certainty. You get a stable monthly housing payment and rock-bottom interest rates – plus the comfort of knowing the place is yours as long as you make that payment.
Many loan and real estate documents can be signed from your computer or smartphone, in the privacy of your home without the need to interact with others. Most real estate listings can be “virtually” toured, as well.
Proceed with caution. Your Bay Equity Loan Officer can help determine the best home loan product for your situation. And please stay well. Follow all recommendation regarding social distancing. Wash hands often, avoid crowds and avoid touching your face. Stay safe!
