The coronavirus global pandemic has rocked the global economy in many ways. Here in the United States, the housing market has been upended, but not in the way you might think. Mortgage rates have actually hit an all-time low, which may be both tempting and confusing to some people, especially because of the other economic stress factors at play. If you’ve been thinking of buying a new home, you may be wondering if now is the best time to buy. Here are some things I recommend you consider, if you want to buy a home.
If you’re looking to buy, the mortgage rates are very enticing
Because of all of the economic turmoil, the Federal Reserve has cut interest rates twice in the past few months. This has led to extremely low mortgage rates, which means that it’s an excellent time to buy a home, in theory. These mortgage rates can make a big difference in how much your home actually ends up costing you. If you were already looking to buy before the pandemic hit, I definitely think it’s a good time to continue with your plans. It’s a rare confluence of events which have led to these low mortgage rates, and they won’t last forever. But before you go ahead and head to your local lender, also consider these factors.
What are your finances like?
It’s very likely your own personal finances have taken a hit during this global pandemic, and that unfortunately is a big factor to consider when determining if now is a good time to buy a home. The mortgage rates may be enticing, yes, but every person’s situation is different. If you’re someone who has lost work, and you don’t know when you’ll be able to return to work, it may be the best decision for you to bide your time until your finances are in order. It all depends on your own personal economic situation right now.
Are there other options?
If you’re not in a position to buy a home, but you want to take advantage of these record-low mortgage rates, there’s always the option to refinance your current home. That way, you’re taking advantage of these low mortgage rates but still working within your budget.
No matter what you decide to do, you have to know that the market is very volatile right now, and the numbers are fluctuating quickly. That means a low rate you see one day may not last very long, and visa versa. If you see a tempting rate, and your finances are in order, it could be the best time for you to buy a home.
As a lending professional with more than 30 years of experience, I’ve made it my life’s work to ensure that every person can finance the home of their dreams. To read more about my work, click here. You can also read a recent article I wrote about real estate predictions for the mortgage market.