Mark’s Market Update - Interest Rates and Inventory Levels

Posted by Mark Gellman on Wednesday, May 13th, 2020 at 12:17pm.

Mark’s Market Update - Interest Rates and Inventory Levels
Welcome to another edition of Mark’s Market Update! Very consistent with last weeks market:

-It is still a sellers market

-significant weakness in inventory

-significant buyer demand

-we’re seeing multiple contracts

-we’re seeing over asking offers

-There is still significant strength in the market

The good news for buyers is that we are expecting an increase in inventory as we work through May and June. Also interest rates are historical lows -

For 2020 interest rates are 3.125% for a 30 year mortgage today. Compared to 2019 it was right under 4% & In 2018 that same loan was almost 4.5% So the buying power today is far more significant than it was just 2 years ago‼️

Now looking at the jumbo market, which are loans over $510,000, we are seeing similar decreases:

-In 2020 it’s about 3.75%

-In 2019 same period around 4.25%

-In 2018 they were right under 4.75%

So even the jumbo market has seen significant value. These are incredibly historic low interest rates. They improve and increase buying power‼️

These are incredible times were the interest rates are amazingly low! There are some analysis suggesting that by years end interest rates will be well below 3% -So if you’ve bought over the last couple years you may consider refinancing and we can make great recommendations of local lenders for you -If you’re considering buying it’s a GREAT time to buy with these interest rates.‼️

Any questions about buying, selling, investing, or refinancing don’t hesitate to call, email, or text. Thank you so much and stay safe and healthy.

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