During this unprecedented time, when COVID-19 is affecting not only our communities, but the entire world, Long & Foster has been actively monitoring the real estate market as it relates to the virus. It’s a fluid situation that’s continuously changing. The long-term impact is not yet known, but here’s a look at the current conditions, as of March 16.
All-Time Low Mortgage Rates
Over the past year or so, mortgage interest rates have been declining as more money flows into the bond markets, and they are now are at an all-time low. As of March 12, Freddie Mac reported a weekly average 30-year fixed rate mortgage of 3.36%, compared to 4.31% around the same time last year. This almost 1% change can increase a consumer’s buying power significantly.
Appreciation Remains Steady
Real estate remains a solid investment with proven appreciation over time. Historically, we’ve seen homes increase in value nearly 5% per year nationwide. In times of stock market volatility, consumers and investors will often flee from equities and put their money into the purchase of real estate as they know it’s an asset with multiple lines of revenue—appreciation, tax advantages, potential cash flow from rental income and loan principle pay down.
To stay updated on what’s happening in your market, contact a Long & Foster agent who can help guide you through the process of buying or selling a home.