As 2020 continues onward, mortgage rates have fallen to an all-time low for the fourth time this year, now averaging at 3.13% as of this week of June. Interest rates on home loans have also experienced lows and highs throughout 2020 due to the rise of COVID-19. For the first time in a while, the stock market in the housing market has faced uncertainty. Not everyone is so keen to buy/sell houses these days during the midst of a pandemic, but that doesn’t mean you shouldn’t keep an eye out on further changes throughout the year.
Matthew Speakman, an economist associated with the online real estate company Zillow says that “rates could just as easily begin to trend upward again, particularly if key economic data or measures to contain or treat the virus show meaningful improvements.” The mortgage market has reached a turning point, which means it could be anyone’s game as of right now. Rates going up could spell trouble for the broader side of the housing market, but could also prove beneficial for those buyers looking to apply for home loans to purchase low properties.
However, an increase in rates could also hamper the housing market in terms of rebounding, providing a negative headwind for the market, which proves difficult to sustain momentum for the unsold property. Either way, it stands to know that with very homes open to a sale, the chance for high sales activity to further is quite low. Keep up to date with the latest in mortgage-based news coverage at Mortgages Done Right.