In light of the coronavirus outbreak, now might not sound like a good time to buy a home. But if you’ve never bought a home before, there are good reasons why now is the right time to get a mortgage.
In response to the falling stock market and economic havoc caused by the coronavirus outbreak, the U.S. Federal Reserve cut the interest rates that banks pay to borrow money to almost zero. At the same time, 30-year fixed-rate mortgages have fallen to as low as 3.29%.
What does this mean for a new homebuyer?
This means not only will your monthly payments be lower, you may also be able to afford a more expensive home than you could have purchased before this crisis. The dream home that was once out of reach could suddenly be yours.
But today’s rates will not last. Once the crisis has passed and the stock market has calmed, mortgage rates will rise again.
Less competition between buyers
Prior to the coronavirus outbreak, real estate experts were prediciting a robust housing market for spring. With inventory low, competition for homes would be steep, driving home prices up and creating bidding wars, which is not favorable to new homebuyers.
Due to the current crisis, fewer people are looking for homes. Many realtors have stopped doing in-person tours and homesellers have stopped holding open houses, due to the dangers of contracting the virus.
This could enable you to buy a great home that wouldn’t have been available to you before.
Stability in uncertain times
During financial uncertainty, buyers turn to real estate as a safe haven. This is because no matter what the economy or the stock market is doing, a home is an investment that not only holds its value, but builds upon it.
Don’t let the current panic of today’s situation keep you from buying your dream home. While others hesitate, you may be able to seize an opportunity that won’t be there once the panic has gone away.
At Resource Financial Services, we love making people’s dreams of home ownership a reality. Our one-stop-shop digital experience begins with our online search tool. Our digital mortgage application RPM (Rapid Process Mortgage) uses secure cloud-based technology to provide a paperless application. Simply upload your documents and complete the process from application to close from your laptop or mobile phone.
Let us walk you through the process and welcome you home to a better mortgage. Visit us online today at rfsmortgage.com to get started.