The Reason Mortgage Rates Are Projected to Increase and What It Means for You
Move to Tennessee from California
Whether we’re ready for it or not, the 2020 presidential election is right around the corner.
As if this year hasn’t brought enough uncertainty, an election could be causing you to question your buying and selling plans…again.
Rocky political environments can create instability in the stock market...causing consumer confidence to drop. But the real estate market isn’t rocky…it’s rock solid. And delaying plans could mean you could be missing out on once-in-a-lifetime affordability.
To get to the heart of this, it’s important to understand how the history of past presidential elections combined with today’s market factors might play out in real estate this time around.
Here’s what we know.
Last Friday, the Bureau for Labor Statistics released their Employment Report for August 2020. The big surprise was that the unemployment rate fell to 8.4%, a full percent lower than what many analysts had forecasted earlier in the week. Though it is tough to look at this as great news when millions of Americans are still without work, the number of unemployed is currently much lower than most experts had projected it would be just a few months ago.
There is a trend here... Higher, Higher, Higher! 💥
August 2020 vs August 2019
Closing Volume = +3% higher
Average Closed Prices = + 10% higher
Pending Volume = + 33% higher
Closings by County for August 2020 vs August 2019:
Davidson is -4.3% lower
Rutherford is +3.6% higher
Williamson is +9.9% higher
Wilson is +19.2% higher
Pendings by County for August 2020 vs August 2019:
Davidson is +34% higher
Rutherford is +37% higher
Williamson is +29% higher
Wilson is +31% higher
One of the many advantages of working with a local real estate professional is that many have relationships with lenders who will be able to help you through this process. Selecting a local lender has several benefits. We understand that hopping online seems easier for you––you can fill out the application, never have to see the person lending, etc. However, when you find the home of your dreams, you don't want a face-less person in charge. Three reasons to select a local lender:
The residential real estate market has definitely been the shining light in this country’s current economic situation. All-time low mortgage rates coupled with a new appreciation of what a home truly means has caused the housing market to push forward through this major health crisis. Let’s look at two measures that explain the resilience of the real estate market.
The news these days seems to have a mix of highs and lows. We may hear that an economic recovery is starting, but we’ve also seen some of the worst economic data in the history of our country. The challenge today is to understand exactly what’s going on and what it means relative to the road ahead. We’ve talked before about what experts expect in the second half of this year, and today that progress largely hinges upon the continued course of the virus.
With more companies figuring out how to efficiently and effectively enable their employees to work remotely (and for longer than most of us initially expected), homeowners throughout the country are re-evaluating their needs.
All of these questions are on the table for many Americans as we ride the wave of the current health crisis and consider evolving homeownership needs.