By Louis Odette and Kay Contreras
Whether you’re a first-time homebuyer gearing up for a home search before the spring market fully wakes up, or you’re an existing homeowner that’s considering lowering your monthly cost by refinancing – now is the time to consider taking advantage of low interest rates. To further illuminate what this can mean for someone buying a home this season: if you maintain the same budget for your home purchase, you can access a lower monthly payment thanks to lower mortgage rates. Alternatively, you may be able to increase the maximum purchase price you can afford while making the same monthly payment.
Essential professionals, such as educators, usually have a consistent base pay with minimal yearly fluctuations. While the stock market may be turbulent, we don’t expect a teacher’s salary to go down as a result. In fact, this turbulence could present an excellent buying opportunity for essential professionals who are willing to be bold in the face of other people’s uncertainty.
It comes as no surprise that global financial markets have been highly volatile over the past several weeks as investors try to assess the impact of COVID-19 on the economy. Under these circumstances, what is a prospective homebuyer to do?
Our advice is to take the long view. Unless the money you have set aside for a down payment is fully invested in the stock market, you still have your hard-earned savings to help you achieve your dream of homeownership. Mortgage rates are near all-time lows, resulting in lower monthly payments or increased purchasing power. If your goal is to reside in a home you own and put down roots in your community, you shouldn’t be distracted by short-term asset price fluctuations.
Prospective homebuyers in higher-cost housing markets, such as metropolitan areas where Landed serves, could reasonably view the recent correction as a buying opportunity. We encourage you to consider taking advantage of reduced competition from others whose wealth and investments are more directly tied to stocks, and those who have been spooked by the volatility.
Remember, a home is so much more than an investment! Don’t lose sight of the intrinsic reasons you want to buy in the first place, whether to provide security for your family, become a more ingrained part of your community, or simply pride of ownership.
With low interest rates and market conditions responding to the virus, now could be a great time to take advantage of this heightened buyer’s market. Landed’s team of homebuying experts can help you make this assessment, and you can find more information in this blog post.
Whatever the COVID-19 outbreak and stock market may bring, reduced competition and affordable financing can work in your favor. Don’t lose sight of your goals. While the stock market investors may feel uncertain, if you are certain about your commitment to your profession and you are committed to your community, don’t let this opportunity pass you by.