Find out why now is the perfect time for buyers to purchase a home in the Orlando real estate market.
Home ownership is a dream that has seemed out of reach for many during the COVID-19 pandemic, as uncertainty has led the way in many aspects of life. However, now is actually a prime time to purchase a home. I’ll tell you why.
As of June 6, the realtor.com Housing Recovery Index showed that the U.S. housing market continues to recover despite the global pandemic. This is mostly due to low mortgage interest rates, which are consistently hovering around the 2.5% to 3.8% range. At the current rate, buyers would be paying just over $400 per month for every $100,000 borrowed on a 30-year fixed mortgage. With a 15-year fixed mortgage, buyers would pay close to $700 per month for every $100,000 borrowed. Both options offer huge savings over this time last year, providing home buyers with the opportunity to save thousands of dollars through the life of the loan.
Mortgage rates can be influenced by a variety of factors, from politics and world events to economic activity, particularly inflation. While home prices have remained level and inventory low in the Orlando market, the current real estate market environment is great for potential buyers to make a deal with a rate that works for them down the road.
Low mortgage rates
Doug Duncan, the senior vice president and chief economist at Fannie Mae says, “Low mortgage rates have helped cushion some of the impact of the pandemic on consumer sentiment regarding whether it’s a good time to buy, which picked back up this month to late-2018 levels.”
Potential buyers are seeing this in the numbers as well. According to the Fannie Mae Home Purchase Sentiment Index, consumers are reporting a more optimistic view of home buying conditions. Fewer consumers are reporting expectations that mortgage rates will go up in the next 12 months, down to 25% from 33% last month. This increased 10 percentage points on the HPSI scale.
With consumer confidence high and interest rates low, now is the time to start the home buying process with an experienced realtor by your side. Once your realtor helps you find the home of your dreams, be sure to work quickly with a lender to lock in these low interest rates. In this market environment, home ownership will be a more affordable reality for many.
Gonzalo Senior is a broker/owner at IRM Investments, Real Estate & Management with over 20 years of experience. His vast knowledge of the residential and commercial real estate market enables him to assist buyers and sellers in receiving the best return on their investments.