Mortgage rates across the country hit an 8-year low…
84% of Americans said buying a home is a priority to them
The survey estimates that nearly 100 million Americans plan on purchasing a home in the next five years, while about 27 million are planning to buy in the next 12 months.
More Americans are seeing the brighter side of things, as 44% said they feel better about their ability to buy a home this year.
The virus has widespread economic implications.
As one of the most expensive purchases you can make, buying a house can be a daunting decision. But right now might be the best time to buy your dream home because mortgage rates across the country are currently at an 8-year low.
On Monday, the average interest rate on the 30-year fixed mortgage, one of the most popular types of mortgages, fell to 3.34 percent, according to Mortgage News Daily. Around this time last year, it was about 4.57 percent. The 15-year home loan rate, another popular mortgage, is also lower than it was last year, falling from 4.14 percent to 3.09 percent.
“At no time in modern economic memory have mortgage rates been able to move significantly or aggressively lower than they are right now,” Mortgage News Daily Chief Operating Officer Matthew Graham said in an article analyzing the low mortgage rates.
Several lenders say it’s already happening
Housing market potential increases 4.7% year over year
“Low mortgage rates have brought buyers back to the housing market, but a lack of listings means buyers are having to compete with one another to secure a sale and lock in a mortgage rate,” said Daryl Fairweather, Redfin Chief Economist. “This competition pushes up prices, which means that even though buyers can get a good deal on a mortgage now they are often paying a higher sticker price.”
…one in four voters in the region say they are worse off now than two years ago, according to a recent poll.
How can that be?
A large part of the answer is increasing housing costs caused by an ongoing shortage of homes, according to economist John Tapogna, founder of the Portland-based ECONorthwest consulting firm. According to Tapogna, the region needed 103,000 new housing units built over the past decade to keep pace with population growth. But only 79,500 were built, with just 2,500 more expected to be completed by 2022.
On Feb. 19, the Portland Business Alliance released a new study of housing production in the region. The group’s takeaway: Despite the frenzied production of new housing units in recent years, the region fell further behind as newcomers outstripped new supply.
The ratio of new homes, including apartments, built in the region, was 8.5 for every 10 new households from 2010 through 2018. In other words, we fell short.
“We needed to build 103,000 new units this decade to keep pace with population demand, but only built 79,500,” concluded the consulting firm ECONorthwest, which crunched housing numbers for the PBA. “Despite historic economic expansion, our region has produced the fewest housing units over any 10-year period since World War II.” The story nationally was different, as builders produced 11 new units for every 10 new households over the past decade.
A social work-inspired approach to guiding first-time homebuyers
There’s a generational gap in how we think about homeownership and the American Dream.
Access to homeownership for this generation isn’t just about credit. It’s about access to trustworthy advice, transparent information, and personalization.
A kaleidoscope of color in Hood River, Oregon
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