As reported by Florida Board of Realtors, Freddie Mac stated the 30-year, fixed-rate mortgage averaged 2.98% last week. This is the first time in 50 years the mortgage rate has dropped below 3 percent and is the lowest recorded since Freddie Mac started tracking average mortgage rates in 1971.
The low mortgage rates right now are good for home buyers and home sellers. Buyers are incentivized to act quickly before the rates go up which benefits the sellers as their home won’t be on the market long.
Though the real estate market slowed for a bit when Covid-19 hit, the market is screaming right now and home inventory in the Florida panhandle is at an all-time low. U.S. home sales jumped 13.8% in June, the second straight increase after two months when sales plunged as the country went into lockdown because of the coronavirus.
Economists believe low rates and changes in home preferences brought on by the pandemic will combine to support further sales gains this year.
“Home sales are being supported by households’ shifting preference for bigger spaces as more and more people work from home as well as lower mortgage rates,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics.
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