Record low mortgage interest rates lure home buyers in spite of economic instability nationwide

There’s no doubt that there’s a lot of economic uncertainty in the air these days thanks to coronavirus but the truth is that in spite of perceived economic problems more home buyers are entering the real estate market than ever before thanks to low interest rates.

A Growing Real Estate Market 

The cost to finance a home purchase has fallen to near the lowest levels ever, which is good news for homebuyers.

But the stock market is seeing brutal declines, and dark clouds are gathering over the U.S. economy.

There’s a tug of war in the housing market between cheap home financing and growing economic dread caused by the coronavirus outbreak.

Economists are split over which way potential homebuyers will be pulled.

“There is a lot of uncertainty over how the coronavirus will evolve, which makes it challenging to project next week, let alone the spring buying season,” said Frank Nothaft, chief economist at CoreLogic. “But my gut is that record low mortgage rates and an economy with a 50-year low in unemployment rate will carry the day.”

Jim Gaines, chief economist for the Real Estate Center at Texas A&M University, isn’t so sure that historically low mortgage rates will outshine economic fears with consumers.

“Right now, we are not 100% sure housing will win,” Gaines said. “We are a little bit dubious about the housing market.”

Source – Dallas News

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