The coronavirus, which is now called COVID-19, has awakened worldwide fear for the past months. The World Health Organization has declared its outbreak as a public health emergency of international concern. Confirmed cases, even death due to this virus, have been alarming. Each country has taken precautionary measures to control its spread. Though an increase in confirmed COVID-19 cases have been stable, its effects on the global market seem unpredictable for now. However, the Mortgage Bankers Association’s recent observations, which were noted along with the coronavirus outbreak, beams homebuyer opportunities.
Reports show that the increase in corona virus cases has not inhibited home buying activity. The Market Composite Index, which measures mortgage loan application reached its highest level two weeks ago, reports inman. The last recorded MCI peak was in May 2013. This observed increase coincides with the increase of coronavirus cases, which includes the US. Although it is still early to determine how coronavirus affects the US Real Estate market, it is conservative to say that the coronavirus outbreak has not stopped US homebuyers from pursuing their American dream home.
Mortgage rates have lowered over the past weeks. Reports recorded an average of 3.51 percent for a 30-year fixed mortgage rate for the week of January 20. Although not suggesting that coronavirus affects US real estatemarket directly, these statistics are opportunities for first-time home buyers and mortgage refinancing opportunities. Lower mortgage rates support home buyer demands. Aside from readily available downpayment assistance programs, low mortgage rates set the stage for a more favorable home ownership process. A lowered monthly mortgage payment is an opportunity for borrowers to adjust their cash flow. Investing opportunities for buying now and selling homes in the future may be a good idea. Similarly, families planning to expand or upgrade their home might be at a good timing now. Whether or not coronavirus affects US real estate market, homebuyers can benefit from recently lowered mortgage rates.
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