The Coronavirus Impact on the U.S. Housing Market
The Coronavirus (COVID-19) has created massive global uncertainty, including a U.S. stock market correction and volatility that was unexpected. While much of the news focus has been about the effect on various financial markets, we must also acknowledge the true impact it continues to have on lives and families around the globe.
With all this uncertainty, how do you make confident decisions in regards to your Real Estate goals?
The National Association of Realtors (NAR) anticipates:
“At the very least, the Coronavirus could cause some people to put home sales on hold.”
While this is understandable, it is important to balance that with what a pause might cost you long term. If you’re considering buying or selling a home, it is key to educate yourself so that you make thoughtful and strategic decisions for your future.
For example, right now we are seeing interest rates at near all-time lows. Your buying power is maximized right now with the extremely low interest rates. Also, when there’s public fear, investors flee stocks for the safety of U.S. bonds, which drives mortgage interest rates even lower. This dynamic should be a strong consideration when making real estate decisions.
According to the National Association of Home Builders (NAHB):
“The Fed’s action was expected but perhaps not to this degree and timing. And the policy change was consistent with recent declines for interest rates in the bond market. These declines should push mortgage interest rates closer to a low 3% average for the 30-year fixed rate mortgage.”
This is exactly what is happening now as mortgage interest rates are near the lowest levels in the history of the housing market.
What does this mean for you?
We still do not know what the full impact of the Coronavirus will be. For more information about the Coronavirus visit the CDC website. It is in times like these that working with an informed and educated Real Estate team like Taylor Real Estate Group is paramount as you decide your next steps. We are here to be a resource for you.