The market's current status is September 2021
After a tumultuous rollercoaster of achieving 2020, we all entered into the new year, hopeful anticipation of the return to normalcy, and perhaps even some blessed predictability. With the COVID-19 vaccine becoming more readily available, and the polarizing presidential election year behind us, we had very good reasons to remain optimistic.
Sure enough, the early months of 2021 were marked by a decline in COVID-19 cases, dwindling of coronavirus-related mandates, and gaining traction in economic activity. As it was a typical, mortgage rates followed suit of these optimistic economic developments, rising to 3.18% in late May, early April.
As soon as we enter the second half of the year, the days and the mortgage market are becoming marked again by uncertainty. The catalyst for such a dangerous time is COVID-19, which is the first of many known viruses, due to the evolution of 'high-transmissible' Delta variants.
Mortgage Interest Rates. If the rate of interest rate is a severance of the second quarter, the main repercussion of societal and economic factors, which may affect the business side of its economy, is the huge issue of any mortgage industry,
After starting in April, rates for a 30-year fixed-rate mortgage have risen only once in the past four months, above the 3.00% mark. In part, rates have been kept low due to increased economic concerns caused by the influx of COVID-19 cases in recent months.
Despite low rates and fears surrounding the pandemic, a rate hike by The Federal Reserve (the Fed) is not possible. According to the July jobs report, the economy was up to a thousand times more than expected numbers, an indication that the recession is coming to an end of the lockdown-related recession of 2020.
As the rate is still rising, it is now a good time for current homeowners to refinance. As long as potential homebuyers find available homes within their price range, they can still benefit from the very low rates for the duration of their mortgage term.
Home prices and inventory. The housing market was hot throughout mid-to-late 2020. The housing market adapted surprisingly well after the shock of the initial COVID-19 outbreak and subsequent lockdowns, the housing sector remained afloat. The industry began to use digital methods to sell homes, the rate plunged as the Fed pumped money into mortgage-backed-securities and we all seemed to be loathsome of our own four walls. All of these factors combined to create a seller's market, where houses were in high demand and supply was low.
In 2021, it is largely a seller's market. And although July showed an increase in supply, prices are expected to remain high as demand continues to outpace the supply. In July prices went up 17,8 % year-over-year, but showed a slight decrease from June to July. This decrease from June pricing is due in large part to the 22% increase in supply from one month to one week. Even this very slight housing supply increase is easing pressure on the buyer and creating a less competitive market than the buyers have faced over the past year. As the inventory for starter homes is still limited, however, the sales growth is in the higher-end market.
Read more: https://myamcap.com/state-of-the-market-august-2021/.
FreddieMac PMMS | National Mortgage News. 1 National Mortgage News | National Housing News. 2 Realtor 1 Realtors Two Realtors | Realtor Realtor 3 Labor | Department of the Treasury | US Department | Labor and Treasury Department.
SOURCE AmCap Home Loans SURCE.