There’s great news for homebuyers — interest rates are falling after steadily climbing the past few months.
As of last week, the average 30-year mortgage had dropped to below 3% again. Rates to refinance hovered around 3.1%, and dropped by eight basis points.
Not surprisingly, the falling rates are pushing wishful homebuyers to lock in a home loan now. Last week alone, the demand for new mortgages rose by nearly 9%.
Jeni Weaver, president of Landed Home Loans, a Landed-affiliate business, says it’s a signal that a lot of the country is returning to pre-pandemic days.
"Rates have been steadily improving over the past few weeks as consumer inflation fears have waned,” Weaver said. “Additionally, with rates ticking back down, vaccinations administered, and economies reopening, we should expect continued strength in housing and hopefully more inventory available for sale."
Jeni Weaver, President of Landed Home Loans.
It will still be a competitive market in many places, though. While the pandemic made some leave crowded cities for the suburbs, demand for homes is now surging in both city and suburban markets. Two months ago, the number of homes available for sale was at a record-low of 1.03 million units, down nearly 30% from the same time last year, according to the National Association of Realtors.
Lawrence Yun, the association’s chief economist, told the New York Times last week the drop has resulted in homes selling at truly record speeds. Homes are now selling, on average, in 20 days – down from the typical 60 days.
At Landed, we too are seeing more and more essential professionals deciding to buy right now. Our down payment program — where we partner with eligible buyers to reach a 20% down payment — is helping them buy the perfect home for them, and save money. (For a recent example, check out Rose and Rich’s Landed story here.)
Plus, our network of Landed partner agents are experts at helping our customers navigate ultra-competitive markets where speed and smarts are critical.
“With our Landed team, and our partners, we are committed to helping essential professionals be able to afford homes in the communities they serve,” Jeni added. “We’ve already been helping these professionals in some of the most competitive markets in the country and we are excited to help more take advantage of these great interest rates.”