Mortgage rates are touching historic lows in 2020, while the demand for a mortgage is rising as a consequence over the last few weeks. In the first week of June, demand for mortgage increased by 5%, placing the demand level by 18% higher than the last year in June. Amidst the surging outbreak during the first 6 weeks of COVID-19, mortgage applications submitted by homebuyers were down by 35% on an annual basis. Moreover, mortgage rates are hitting record lows.
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Mortgage Applications Increases Noted Week-to-Week
Homebuyers are rushing back into the housing market as noted in May and the beginning of June. The rising demand is recorded week-to-week. According to the Mortgage Bankers Association, during the first week of June, the number of mortgage applications submitted by homebuyers increased by 5%, reporting an 18% increase when compared to the last year’s results.
The Beginning of Summer Compensating for Spring Lows in the Housing Market
Buyer s are returning to the housing market, while many first-time homebuyers are applying for mortgages. Low-interest rates are affecting the demand, even though buying a home has become less affordable when compared to 2019. Sales that should have happened in spring according to historic data are likely to happen during summer. On the other hand, the supply in housing is decreasing with the COVID-19 outbreak effects with unemployment rates rising as a negative consequence.
Can Home Buyers Save Some Cash on Low-Interest Mortgage Rates?
Rates for a 30-year fixed mortgage fell to 3.37% from the last year’s create of 3.42%. That is one of the lowest rates in the last years. Buyers can save some cash on low-interest rates; however, lenders have created stricter requirements, which is how not all potential home buyers may take advantage of this case.
