10/02/2020: Why the pandemic has created a rare opportunity for home buyers
Despite the fastest economic decline in modern history, not all sectors of the economy have been hurt by the pandemic. In fact, now is one of the best times in history to buy a home.
Citizens Bank recent activity shows that there have been few times in history more favorable to buying a home. Today, we’re going to provide some facts and statistics to back up these claims.
Interest rates have plummeted to all-time lows
You might remember an earlier blog in which we discussed what you needed to know before buying a house in 2020–and the main topic was interest rates.
Interest rates are at record lows because the Federal Reserve wants to boost the economy. This includes the mortgage loan you take out on your home. Mortgage loan interest rates have plunged below 3%, reaching 2.5% or lower in many cases.
Remember, mortgage rates represent the amount you will pay in addition to the loan for the house. Think of it as the cost of borrowing money. The lower the rate, the lower the cost of borrowing. Because the Federal Reserve has taken such drastic (and necessary) action, rates will remain low through the end of the year.
The pandemic has encouraged more isolated living and working conditions
Buying a house at a fair price, and at a low mortgage rate, offers a rare opportunity to make an investment in your living space, rather than paying rent that you will never see again.
Furthermore, as the concept of how a house functions for each family has changed, what people look for in a house has changed to go along with it. Due to this year’s circumstances and beyond, the home has also become a classroom, office, and virtual social assembly. People are quickly moving into and building new homes that meet these requirements–which often means more square footage.
In a fashion more rapid than we foresaw, the concept of the ‘forever home’ is becoming a reality. The home as a function of the entire day’s activities now makes it a place where, now, more than ever, people are looking to cement their next home as a permanent place of not only residence, but also work, school, community, and even old age.
Perusing a home has never been easier
Another misconception regarding how the pandemic has affected the housing market is that the virus has made it difficult if not impossible to view a home.
On the contrary, real estate agencies are evolving rapidly, by offering a virtual viewing experience. Prior to the pandemic, home buyers were forced to attend every location onsite. Now, you can browse a home from your own couch!
Such trends will continue. Online buying experiences are popping up every day. The pandemic is only accelerating this change.
Though it may sound strange and maybe even ironic, now is an historic time to buy a new home. Be sure to get in contact with our mortgage loan experts at Citizens Bank to start the process today!
Learn more about buying your first home with Citizens Bank
Citizens Bank is the oldest, continuously operating minority-owned bank in the United States. Since 1904, we’ve been serving the people of Nashville and Memphis, TN. To learn more about how the pandemic has created a rare home-buying opportunity, give us a call at (855) 788-4465. For more information, visit www.bankcbn.com or find us on Facebook, Instagram, and Twitter.