Historically Low Interest Rates Empower Buyers
Posted: June 3rd, 2020
Low Mortgage Rates Continue to Break Records
May 2020 saw yet another record set for mortgage interest rates. The previous record of 3.31%, set just the week prior in late April, dropped to 3.23% in May. According to the Washington Post, this is the lowest mortgage interest rate recorded since Freddie Mac started tracking mortgage rates in 1971. Since the outbreak of the coronavirus, industry experts have been unsure about the future of the housing market, but this remarkable factor may be one reason why the market has avoided catastrophe thus far.
This low average rate, calculated by aggregating data from 125 lenders across the country, has reenergized some buyers’ searches for a new home. As we mentioned in a prior blog, COVID-19 initially caused much confusion and some panic among real estate professionals; market analysts predicted that new-home sales would drop when April arrived. However, that prediction didn’t come true, and new-home sales rose by 1% last month, according to U.S. Census Bureau data.
Interesting Opportunities in the Brevard County Housing Market
Sellers, too, have reacted to the outbreak in different ways. While some removed their homes from the market to wait until trouble settled, others remained steadfast. In the Brevard County real estate market in particular, we’ve seen homes move quickly with buyer interest refusing to wane. We’ve also seen unusual investment opportunities arising due to the fluctuation in the market. If current trends are to be believed, we are in for a busy summer in the real estate market.
What it Means for Homebuyers
Why are historically low mortgage rates of such importance to interested Brevard County homebuyers? They offer much more buying power. Securing a mortgage at the lowest possible rate can help give buyers access to properties in higher price brackets. Keep in mind that lenders are paying close attention to credit scores at this time, so having a perfect (or near-perfect) credit score will give you a big advantage in securing your rate.
Are you ready to purchase a home in Brevard County? Whether you’re moving to the area from out of state or you’re ready for a change in your living situation, now is the time to find out the mortgage rate for which you qualify. Ellingson Properties connects homebuyers with their dream homes in Brevard County at any price point. To learn more or to schedule a consultation, call us at 321-750-7050 today. View our available luxury properties here.