According to the latest FreddieMac Quarterly Forecast, mortgage interest rates fell to historically low levels this spring, and they’re projected to remain low for the foreseeable future. So what does that mean for buying and selling real estate right now in the Metro New Orleans, Greater Baton Rouge, and South Mississippi region? It means that there is a huge incentive for buyers who are ready to purchase and homeowners looking for eager buyers can take advantage of this opportune time to sell as well.
There’s a very positive outlook on interest rates going forward, as the projections from the FreddieMac report indicate continued lows into 2021. Our expert partners at Movement Mortgage agreed:
“Going forward, we forecast the 30-year fixed-rate mortgage to remain low, falling to a yearly average of 3.4% to 3.2% in 2020 and 2021.”
With mortgage rates hovering at such enticingly low levels, ongoing buyer interest is bound to keep driving the housing market forward. Homebuyers are now in what FreddieMac is identifying as the buying mood:
“While the rebound in the economy is uneven, one segment that is exhibiting strength is the housing market. Purchase demand activity is up over twenty percent from a year ago, the highest since January 2009. Mortgage rates have hit another record low due to declining inflationary pressures, putting many homebuyers in the buying mood.”
This home-buying mood can also raise our collective spirits as it signals good things for the overall economy. Chip Gardner, VP of Operations at GARDNER, REALTORS recently held a Real Estate Q&A to discuss the state of the local real estate market and what to expect as we move forward. He notes:
“We know that Real Estate, or shelter, is one of our three basic needs. When you take away or limit one of those needs like we’ve seen during the pandemic, there is what we refer to as pent up demand. The local housing market is still very healthy with new contracts coming in and opportunities for people to invest. The wave of real estate activity is here, and we believe housing will be one of the biggest factors leading the way to economic recovery.”
All of this exciting information and activity does come with one caveat. Just like the interest rates, the homes available for sale are at historically low levels as well. With housing inventory as scarce as it is today – a nearly 20% year-over-year decline in available homes to purchase – the trick will be keeping buyers in the purchasing mood.
What does this mean for buyers?
There is increased competition with fewer homes available for purchase and low mortgage rates are helping to drive affordability as well. Getting pre-approved now will help you gain a competitive advantage and accelerate the homebuying process, so you’re ready to go when you find that perfect home you’d like to buy. Then, working quickly and efficiently with a trusted local real estate advisor at GARDNER, REALTORS will help put you in a position to act fast when you’re ready to make your move.
And when you are ready, you can talk to our partners at Movement Mortgage. As the “#1 Fastest-Growing Mortgage Bank” in North America, Movement Mortgage has earned a reputation for putting customers first no matter how large or small of a loan you’re looking for.
What does this mean for sellers?
If you are thinking of selling your house, know that the motivation for buyers to purchase right now is as high as ever with rates where they are today. Selling now before other sellers come to market in your neighborhood this summer might put your house high on the list for many buyers. Homebuyers are clearly in the mood to buy, and with today’s safety guidelines and precautions in place to show your house, confidence is also on your side. Click here to learn more about how GARDNER, REALTORS is still delivering the same excellent service you’ve come to expect even during the pandemic.
Whether you’re looking to buy or sell, there is great motivation to be in the housing market, especially with mortgage rates hovering at this historic all-time low. Are you interested in taking advantage of this market and buying or selling real estate? Let’s connect today to make sure you’re ready to make your move. At GARDNER, REALTORS, we are always here for you as your local real estate advisors, so feel free to reach out anytime!
Thank you to Keeping Current Matters for providing this content.