As residents of the U.S. sort through the many updates on the progress of containing the outbreak of COVID-19 cases, anxiously await news for a vaccine and patiently waiting to find out when life will return to some sense of normal, the U.S. economy fluctuates with the positive and not so encouraging updates. Most recently, the news of the economic uncertainty due to the pandemic has impacted mortgage rates, yet again.
According to an article published by CNN, mortgage rates recently dropped below 3% for a 30 year mortgage. This drop marked a 50 year record low for mortgage rates. As a result, many home buyers, and those that were sitting on the fence debating purchasing a home, have decided that there’s no time like the present to make the move. The demand for homes has increased, especially since the lower rates has allowed more prospective home buyers to afford homes that might have been just beyond their reach just a few short weeks ago.
However, just as the daily news cycle is filled with promise coupled with concerning medical and economic updates, the good news about rates is wrapped with a warning of what may be on the horizon. Since the rise in coronavirus cases seems to be surging again, more job layoffs and even job losses could be inevitable. Obviously, as unemployment rises, home buyers can be hesitant, if not unable, to purchase a home.
As the article quotes Danielle Hale, chief economist for Realtor.com, things could look up soon, “On the upside, signs of progress toward a coronavirus vaccine give hope that there’s a path to a new normal where health concerns don’t dominate decision making.” We all hope that comes sooner rather than later.
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