Mortgage rates are at an all-time low! How will COVID-19 affect mortgage rates and what do you need to know?

Mortgage Rates Reach an All-Time Low Amid Corona Pandemic

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If you’re looking to buy a home, you may want to think twice about waiting. Florida’s mortgage rates are at an all-time low, making now a great time to make a move.

Mortgage Rates Down from One Year Ago

According to the Primary Market Survey courtesy of Freddie Mac, at the end of February 2020, 30-year fixed-rate mortgages averaged 3.45% compared to 4.35% in February 2019. 15-year fixed-rates are averaging 2.95% compared to 3.77% this time last year.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) is averaging 3.20%. At the end of February 2019, it was 3.84%.

What Effect Will Covid-19 Have?

Even in the middle of the COVID-19 crisis, we still see rates lower than they’ve been in a really long time. At the beginning of 2020, economists predicted that historically low rates combined with consumer confidence were a recipe for a strong year for Florida’s real estate industry. Although rates are still low, the confidence of consumers during these trying times has yet to be seen. If consumer confidence holds, it will drive home sales upward. This is a trend that we will hopefully continue to see in the coming months.

Housing Shortage Still Persists

It is great news for homebuyers that mortgage rates are so low. However, the issue of limited housing inventory is still an issue. Unfortunately, lower rates will not do much to convince sellers to put their homes on the market. This is especially true if they are leery of prospective buyers walking through their home given the current circumstances.

I’m Gitta, with Gitta Sells and Associates. If you’re looking to buy a home, take advantage of the attractive mortgage rates. Let my team and I help you find the home of your dreams. Contact us today at gittasells@gitta.com or 407-3330-2181. Until next week, stay safe!

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