November 2020 Mortgage Market Update
🇺🇸 Will the election have an impact on the housing and mortgage market?
One of the biggest questions people are currently asking, “Is the election going to have an impact on the housing and mortgage market?” Part of my job as your mortgage professional is to stay on top of current economic, financial and mortgage news. Many financial experts have predicted that if the current administration wins, we will probably see a very similar trend to what we have been seeing right now in mortgage interest rates. Rates will likely stay relatively low, but they will probably go slightly higher heading into next year. However, it has been forecasted that if Presidential Candidate Biden wins the election, we will probably see rates stay low or potentially go lower. Biden has made it very clear in his tax plan that he is pro housing, and that he’s going to give a first time buyer tax credit to every American that buys a home. This could be upwards of $16,000. If you remember back to when Obama was President, their goal was to get every American into a home, and the Obama administration slashed the FHA mortgage insurance premium. So it is predicted that will probably heat the housing market up even more than it is right now, if that’s even possible.
🔥 California Housing Market on Fire
What’s important to remember for everyone, especially in Northern California is the housing market is on fire right now. It is so HOT for two main reasons. First, there are simply not enough homes for people that need to buy them or rent them. There are more families that need housing than there is housing to supply them. That problem isn’t going away anytime soon without massive deregulation at the state level to make it more affordable for builders to build replacement homes. It doesn’t seem like that’s going to happen anytime soon. Secondly, there are all time LOW interest rates, which is fueling the housing market. People can buy a home today with a payment that’s much lower than what it would have been this time last year, even though they’re paying higher prices for that house. Unless those two things change, we’re still going to have a very heated housing market next year. In the end, we’re not going to see that change just because one person or the other is elected.
⬇️ All Time LOW Interest Rates
As most people know rates have been at all-time lows since the pandemic began. They are still absolutely incredibly LOW. The 30 year fixed mortgage rates are hanging in the high twos, low threes depending on credit or type of loan you’re doing. At 15 years, some loans are in the low twos, so going forward into next year we expect that to continue to be the trend. They could be slightly higher or slightly lower, but they’re probably not going to change a whole lot.
❤️ Thank you for your Business and Referrals!
If you haven’t looked into refinancing, contact our office to get prequalified and to see if we can help lower your mortgage payment. Thanks again for your continued support and referrals, if you have any questions, please call at any time, have a great November!