Low mortgage rates are fueling the housing market’s recovery from the coronavirus. But many experts are concerned with the limits of how much of a boost they can host, as well as when the rates may take a turn upward again.
Coronavirus cases may be on the rise in some places, but that hasn’t stopped Americans from looking for homes to buy – including here in Florida. And unsurprisingly, many of these homes are outside of the densely populated cities and into the suburbs. Realtor.com announced that views of listings online in May 2020 grew by 13% compared to May 2019 for suburban zip codes – roughly double the rate of urban areas.
Regardless, the migration to the suburbs – and other less densely populated areas like northern Palm Beach County – is not a new trend. After many months of stay-at-home orders, the desire to have more living space and the potential for more people to work remotely are two factors that are contributing to the popularity of these low-key locations.
Despite where buyers live right now— or where they’re looking to buy — interest in entering the property market continues to grow. The number of people applying for mortgages used to purchase homes increased for the ninth consecutive week and hit the highest level in over 11 years, according to data released the third week of June by the Mortgage Bankers Association.
As mortgage rates continue to drop, it puts many home buyers in the buying mood and creates a larger demand on the market. Many areas like Florida are seeing more homes go on the market each month, but as we have learned in the past several months, you just never know what to expect. This precautionary attitude may also be affecting the flow of new homes for sale to the market.
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