The coronavirus (COVID-19) outbreak has made way for a number of historical moments across various industries. This also stands true for the real estate sector, which has witnessed various COVID-19 effects in the past few months.
This includes the first few weeks of inactivity after the pandemic reached the U.S. But it also refers to the subsequent period of remote showings and the absence of open houses. Most of all, it mainly relates to the so-called coronavirus mortgage rates that also apply to the Dayton housing market.
The Sector Resumes Operations With a Catch on Mortgage Rates
A few months after COVID-19 hit the U.S., the real estate sector is mostly back to normal. In-person showings and open houses are now being conducted with safety measures in check. Whereas, new listings and contracts are appearing left, right, and center.
But the one thing that has stayed in effect is the decrease in mortgage rates. Since the Federal Reserve cut its benchmark interest rate to near zero, mortgage rates have started to fall rapidly. With the Fed deciding to maintain its approach until 2022, the movement seems to be here for the long haul.
Among the overall drop in mortgage rates, this phenomenon has also made way for record-breaking falls. For instance, the 30-year fixed-rate mortgage ranged upwards of 3.5 percent before the pandemic. But it started to rapidly drop after the outbreak hit the U.S. and its economy.
In the first week of August, the mortgage rate reached another all-time low of 2.88 percent. But the movement didn’t stop there. In the week ending September 10, the rate dropped to 2.86 percent - the lowest in its tracking history. It is a staggering record, given that Freddie Mac has been following these rates since 1971.
Low Rates Fuel Market Activity
While the interest rates are alarming for lenders, they spell quite the safe haven for borrowers. That is why, it’s no surprise to see how the coronavirus mortgage rates have fueled market activity across various areas. From Ohio to Florida, buyer demand has heightened over different regions. In addition to the Eastern US, this also holds true for other parts of the country.
According to officials from Freddie Mac, the overall purchase interest has risen to a whopping 25 percent than last year. The demand has also seen a consistent increase since the past four months, which is when realtors properly resumed operations. This also includes the Dayton housing market, which has seen heightened activity in the past few months.
Dayton Home Sales Have Continued to Increase
After the first few months of the pandemic, Dayton has recorded an increase in demand and purchases alike. This has helped in boosting the already-shortened inventory. At the same time, it has also pushed home prices to an elevated level.
But the effects haven’t stopped there. They have also resulted in tangible sales among various listings. This includes single family homes and condos alike, which have mostly sold near their asking price.
If the mortgage rates continue at this trend, it may help fuel the sales and activity in the Gem City. With that being said, the current COVID-19 conditions may influence that factor in the upcoming weeks.
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