As we mentioned last week, mortgage rates have hit another all-time low of 3.13%. And as buyers emerge from state lock-downs due to COVID-19, demand for homes has soared. A seasonally adjusted index measuring purchase applications for home loans jumped to an 11-year high last week, the Mortgage Bankers Association said in a Wednesday report. “While the rebound in the economy is uneven, one segment that is exhibiting strength is the housing market,” said Sam Khater, Freddie Mac’s Chief Economist. “Purchase demand activity is up over twenty percent from a year ago, the highest since January 2009.”
“As the market heads into the summer, growth in online home searches and asking prices (on listings advertised on realtor.com’s website) has surpassed pre-COVID levels, but movement in supply and time on market remains well below seasonal pace,” says Javier Vivas, director of economic research for realtor.com in their weekly market report.
The realtor.com Housing Market Recovery Index for the week ending June 13 reached 90.0 nationwide, indicating that the U.S. market is about halfway recovered based on January 2020 levels. This week’s reading was up 1.2 points over the prior week and 10.0 points below the January trend baseline.
What does this mean for you?
If you are thinking about selling your home, now is the time to get it on the market while demand is high, rates are low and competition from other homes is low. Homes are selling in the Sarasota area with the number of homes under contract last May matching the number from last year.
If you are considering buying a home, don’t wait. Act now while rates are at an all-time low. Inventory is a little low so it may take more time to find your perfect home, but you will find it. As inventory increases and investors get back into the market, mortgage rates will eventually begin to rise.
The local housing market is hot and prices may begin to rise in our area as demand increases to yet higher levels.
Ask us how you can save thousands on the costs associated with a mortgage and get $1000.00 towards other closing costs. https://victoriasellssarasota.com/mortgage-rates/