Tuesday, July 21, 2020 / by Vanessa Saunders
We wrote yesterday about the factors keeping homes for sale off the Hudson Valley real estate market. We named six "suspects" causing the dearth of housing inventory. There's one more:
30 year fixed rate mortgage interest rates that recently fell below 3%.
Freddie Mac’s nationwide survey of mortgage rates, released on Thursday, July 16th, showed the average on a 30-year mortgage at 2.98 percent, the first time this key rate has fallen below 3 percent since the government-backed mortgage finance firm began publishing the data in 1971. But unfortunately for home buyers in the Hudson Valley, mortgage rates so deliciously low have caused many existing homeowners to to refinance and stay put.
Mark Fleming, the chief economist at First American said in an appearance on Yahoo Finance, "I never thought I’d be able to say that a 30-year fixed-rate mortgage would be less than 3 percent but now we have it,” Fleming said. “That is in large part because of the economic situation that we’re in and the Fed’s monetary stimulus and treasury yields — particularly on the 10-year being low — so that’s what’s bringing the mortgage rate down to those levels."
"Why move when you can lock in at less than 3 percent in a time like this?” Fleming said.
Mortgage rates are predicted to remain low or drop even more for the foreseeable future. The Federal Reserve has been hinting that they will probably refrain from raising baseline rates, in part because recent news about the Covid-19 pandemic indicates we are not out of the woods controlling the virus.
The reality is, homes will continue to go up in price, and serious buyers will pay it. There are SOME homes for sale, and some people are going to get a great mortgage, but only if they're willing to pay a premium to win the quality properties in desirable areas.
For more information about Hudson Valley homes, contact us:
Interested in buying or selling a home the Mid-Hudson valley? Get a head start and search all seven Mid-Hudson Valley counties (Rockland, Dutchess, Orange, Putnam, Sullivan, Ulster and Westchester) for homes on the market by using our free search site at www.gpshousehunt.com.