Because of recent shelter-in-place orders across the country, many people are looking forward to possibly buying a home this summer. According to LendingTree, 53% of homebuyers are MORE likely to purchase a home within the next year because of the pandemic caused by Covid-19.
The main factor leading potential homebuyers to possibly purchase is to take advantage of record-low interest rates (67% of those surveyed).
The average 30-year fixed-rate mortgage dropped to 3.15%. This is the lowest rate ever for Freddie Mac, based on data going back nearly 50 years.
It’s important to note that even with the record low rates, lenders have become stricter with what it takes to qualify for a loan.
Some people are considering moving because with quarantining having people at home, some are dissatisfied being stuck in their small spaces and want more space. Another important contributing factor for consumers’ willingness to buy is that 32% said that they have been able to save more money for a down payment due to reduced spending, another 30% said due to home prices dropping.