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Expert Update - 12.04.2020

Mortgage Rates Shatter Records Again

Great news for homebuyers - the 30-year fixed-rate mortgage set a new record low for the thirteenth time this year, averaging 2.72%. Economists point to weaker consumer spending lately driving down mortgage rates. These low rates are fueling competition amongst buyers and boosting existing home buying activity to the highest level since 2006. Builders have answered the call by constructing single-family homes at a rate not seen since 2007's housing bubble.1

Economic Indicators Fueling Optimism

The U.S. economy is fighting back from the crushing blow of the pandemic, and the latest data suggests its recent progress is poised to continue. Economists look at a number of factors to judge the economy's health, and they see rising industrial production, modest growth in retail sales, strong real estate demand and homebuilding activity, and increased household debt from more families leveraging historically low mortgage rates to buy a home or refinance all as positive signs.2

Making Room for Mom and Dad

Multigenerational homes are growing in popularity, spurred on in part thanks to COVID-19. Many families want to keep aging relatives out of senior living or group-setting facilities for their health and safety. Bringing the family under one roof allows relatives to spend more quality time with one another and pool incomes to afford a larger home. Homebuilders have responded to this trend by constructing houses with two owners' suites, with one on the ground floor.3

Are Better School Districts Worth the Pricier Houses?

School rankings and test scores give you an idea of how a school performs, but there are other factors to consider before paying the higher home price to live in the district with the best-rated schools. Consider what factors are critical for you and your family. It might be diversity, academic achievement, services for students with disabilities, sports programs, student-to-teacher ratios, parent involvement, or something else. Dig into cheaper districts' offering to determine if you need to live in a more expensive distrist to get the services you want. Talking to parents at the school is a great way to an inside scoop on learning environment and student experience beyond what rankings and data can show.4

Learn What to Expect

From navigating financing to crafting an offer, buying your first home is a huge milestone that can feel daunting and overwhelming at times. To give a more genuine portrayal of the homebuying process, the National Association of Realtors® just released a new eight-part educational video series on Roku called "First-Time Buyer." The series provides an up-close look at real-life home buyers, telling stories about the critical role real estate agents play in every transaction and common hurdles you may face throughout the process. You can also catch the 15-minute episodes with additional behind-the-scenes content and resources on YouTube and Facebook.5

 

Sources: REALTOR Magazine; realtor.com; REALTOR Magazine; msn; NAR

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