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The latest Freddie Mac PMMS survey has 30-year mortgage rates just shy of 3%. Based on Fed policy and future uncertainty due to Covid-19, mortgage rates should remain at these levels for the foreseeable future. Federal Reserve Chair Jerome Powell stated that the Federal Reserve’s goal is to keep rates low for the foreseeable future. This is their effort to help those affected by unemployment despite the potential for inflation to run higher than preferred levels. Keeping rates low and continuing to buy mortgage-backed securities encourages long term mortgage rates to remain this way.
The CoreLogic Home Price Index noted that home prices grew at an annualized 5.5% gain, due to a continued limited inventory of homes available for sale and historically low mortgage rates. The National Association of Realtors mentioned that July’s existing home sales are at a seasonally adjusted 5.86 million units, an almost 25% month over month increase.
Housing starts and building permits continue to rise, with an average 20% month-to-month increase due to the need for additional residential inventory. The continued need for housing at these lower price points coupled with the historically low mortgage rates drives these gains.
Corelogic says home-buying activity is rising in suburban and rural areas. This allows for more space at home to work remotely. This is especially true for Nassau and Suffolk country, where home prices were up 4.3% last month on an annualized basis. According to the National Association of Home Builders, residential construction keeps increasing in these suburban and rural areas to keep up with added demand.
The mortgage and housing market both remain strong. Are you looking to refinance your mortgage or get preapproved to buy a house? Our Mortgage Loan Originators are always available to help. Our online application process is seamless and secure. We provide milestone updates tracking your progress along the way. In almost all cases, we will service your mortgage, so you can be a Lyons’ customer for life.