Market Update – Week of July 6, 2020
The future of the real estate market in 2020 might seem unclear, especially if you've been following the news in the last month. The main keyword you'll hear from industry analysts is "uncertain." However, the U.S. housing market, which was at the epicenter of the previous financial crisis, is expected to remain a bright spot amid a sharp downturn as the coronavirus pandemic continues to wreak economic havoc.1
Week of 7/62
1 Year Ago3
4 Weeks Ago4
Conventional 30 Year Fixed
FHA 30 Year Fixed
VA 30 Year Fixed
Mortgage rates are still holding steady at historic all-time lows.5 Rates took a dive back in June after the Federal Reserve announced low-interest rates across the board for the next two years.6 However, they could still change their minds.
Stable but uncertain
- Low mortgage rates and low housing inventory is keeping the current market stable.
- Stiff competition in home purchases could limit future market growth.
Record surge in home sales
- The National Association of Realtors' Pending Home Sales Index in May rose by 44.3% to 99.6, highest month-over-month gain since tracking began in January 2001.7
- Purchase rate lock activity was up in June, signaling recovery.8
New upsurge of COVID affecting buyers and owners
- Rising COVID-19 cases are forcing states to rollback their reopening plans, which is affecting local economies and homebuyers.
- Unemployment is still the biggest existential threat to the market right now with many still calling for another round of stimulus and extended unemployment benefits.
- Household debt is at a record high level, due to the slow recovery and fears of recession.
A change in available properties for sale
- Agents are finding new ways to keep buyers engaged by pulling temporary or off-market properties.
Buyers are still facing stiff competition and bidding wars due to a combination of low rates and the continued housing shortage. Sellers actively removed their homes from the market during COVID, but as economic recovery continues, we'll see homes go back on the market.
Check today's mortgage rates.
2 – Source: Mortgage Rates Today, Week of July 6, 2020: https://themortgagereports.com/67390/mortgage-rates-today-july-06-2020-plus-lock-recommendations
3 -Source: Mortgage Rates Today, Week of July 5, 2019: https://themortgagereports.com/51952/mortgage-rates-today-july-05-2019-plus-lock-recommendations
4 – Source: Mortgage Rates Today, Week of June 8, 2020: https://themortgagereports.com/66498/mortgage-rates-today-june-08-2020-plus-lock-recommendations