After the housing market nearly shut down as the coronavirus swept the country in March and April, buyers have started coming back.
In a stunning turnaround, the country regained 2.5 million jobs in May. That's by far the greatest monthly increase in history, and points toward an economic comeback.
When recovering from uncertain financial times, housing demand tends to be the first economic pillar to stabilize. With May’s first steps toward re-opening, numerous Americans are eager for their first home - or an upgrade.
While many shoppers are leftovers from before the crisis, analysts believe the pandemic may actually have expanded the potential buyer pool.
Spending more time living and working at home, some folks took a long look at exactly where their current living spaces came up short. Understandably, the need for workable home office space and more flexible outdoor amenities moved quickly to the top of their lists.
The trouble is, there’s still not much out there to buy. Still concerned about the economy and health issues, the number of active sellers is way down. There are 29% fewer listings than the same time last year, according to realtor.com.
The weak supply means competition. More than 41% of homes faced a bidding war in the four weeks ending May 10, up from just 9% in January, before the pandemic hit.
If you’re already a homeowner, it can be an attractive time to apply for a refinance loan on your current mortgage. With mortgage loan interest rates reaching all-time lows across the nation, a cash-out refinance for more than the amount can be a perfect way to finance any necessary additions.
Other homeowners choose a refinance to lower monthly payments or help pay off higher-interest bills. With enough home equity, those with mortgage insurance may be able to refinance to a conventional loan.
At Bay Equity Home Loans, our experienced loan officers can help you figure out your goals.
Mortgage refinancing can be a great financial decision, but it doesn’t make sense for everyone. Consult a financial professional for more in-depth advice.
Home equity is one of many tools to help you meet your financial goals, but it should be used thoughtfully and with discipline.