According to the latest FreddieMac Quarterly Forecast, mortgage interest rates have fallen to historically low levels this spring and they’re projected to remain low. This means there’s a huge incentive for homebuyers who are ready to purchase. Homebuyers Guide: And homeowners looking for eager buyers can take advantage of this opportune time to sell as well.
There’s a very positive outlook on interest rates going forward, as the projections from the FreddieMac report indicate continued lows into 2021:
“Going forward, we forecast the 30-year fixed-rate mortgage to remain low, falling to a yearly average of 3.4% in 2020 and 3.2% in 2021.”
With mortgage rates hovering at such compelling places, ongoing homebuyers interest is bound to keep driving the housing market forward. Rates also reached another record low last week, so homebuyers are in what FreddieMac is identifying as the buying mood:
“While the rebound in the economy is uneven, one segment that is exhibiting strength is the housing market. Purchase demand activity is up over twenty percent from a year ago, the highest since January 2009. Mortgage rates have hit another record low due to declining inflationary pressures, putting many homebuyers in the buying mood. However, it will be difficult to sustain the momentum in demand as unsold inventory was at near record lows coming into the pandemic and it has only dropped since then.”
There’s no doubt that even though homebuyers are ready to purchase, it’s hard for many of them to find a home to buy today. Mortgage rates aren’t the only thing hovering near all-time lows; homes available for sale are too. With housing inventory as scarce as it is today – a nearly 20% year-over-year decline in available homes to purchase – keeping homebuyers in the purchasing mood may be tough if they can’t find a home to buy (See Homebuyers Guide graph below):
What does this mean for homebuyers ? | Homebuyers Guide
Competition is hot with so few homes available for purchase and low mortgage rates are helping to drive affordability as well. Getting pre-approved now will help you gain a competitive advantage and accelerate the Homebuyers Guide buying process, so you’re ready to go when you find that perfect home you’d like to buy. Working quickly and efficiently with a trusted real estate professional will help put you in a position to act fast when you’re ready to make your move.
What does this mean for sellers?
If you’re thinking of selling your house, know that the motivation for Homebuyers Guide to purchase right now is as high as ever with rates where they are today. Selling now before other sellers come to market in your neighborhood this summer might put your house high on the list for many homebuyers(Homebuyers Guide). Homebuyers are clearly in the mood to buy, and with today’s safety guidelines and precautions in place to show your house, confidence is also on your side.
Whether you’re looking to buy or sell, there’s great motivation to be in the housing market, especially with mortgage rates hovering at this historic all-time low. Let’s connect today to make sure you’re ready to make your move. More homebuyers guide below.
Homebuyer: Can I Back Out if I Change My Mind?
Whether you’re suffering from buyer’s remorse, you found another home you like more or any other reason, it’s a common fear.
What if you make an offer on a home for sale, the seller accepts it and then you change your mind about the purchase? Are you locked into the contract?
The answer is, “it depends.” Finding another house you like more isn’t going to fly, nor will a bad case of buyer’s remorse.
There are other conditions, however, built right into the purchase contract, that will allow you to get out of the purchase. Often, this includes a return of your earnest money deposit, but not always.
These conditions even have a name: Contingencies.
The dictionary defines a contingency as “a provision for an unforeseen event or circumstance.” We like to think of it as an “if.”
“I will consummate the purchase of your home IF ‘Y’ occurs.”
Y is the contingency. It can stand for the success of your loan application, the sale of your current home, a satisfactory home inspection, the home appraises for what the bank is willing to lend. There are lots of different contingencies.
Contingencies have a time limit, which is written into the contract. For instance, the home inspection contingency may expire one or two weeks after receipt of the inspection report.
Let’s assume you didn’t miss the deadline. Instead, you ask the seller to fix the hole in the roof by a certain date. If the seller fails to complete the work to your satisfaction by that date, you can walk away from the purchase with a full return of your earnest money deposit.
Today, we take a look at some of the more common contingencies in a home purchase contract – Homebuyers Guide.