COVID-19 Mortgage & Real Estate Update 5/13/20
The Grand Rapids real estate market is hot this spring! COVID-19 has not had a negative impact on the market.
For starters, in-person house showings are now legal!
Mortgage rates are also very low. Yes, they should be lower if you consider historical relationships between mortgage and other interest rates, like the 10-year treasury index. Ultimately, they may go even lower.
The federal reserve has done what it needed to do behind-the-scenes to keep the mortgage markets flowing and operating by purchasing billions of mortgage-backed securities.
The number of people who have stopped making mortgage payments has impacted the mortgage market by effecting rates, costs and loan availability. Loans that are deemed risky are not being offered, so people with lower credit scores are temporarily shut out of the market.
Once the economy opens up in Michigan, I anticipate the lenders I work with to offer mortgage products to those with lower scores again; and for some loan products such as cash out refinances to become less expensive.
So, the bottom line is that real estate is going great guns, and low rate mortgages are available to those with income and good credit scores. If you are considering buying, selling, or refinancing your mortgage, please reach out to me and I’d be glad to help!
For more information or if you have any questions, contact me here.