JQ Group CEO, Jesús Quintero Yamin, believes that the biggest worldwide concern is the uncertain Coronavirus´ effect over economies. In the U.S., it has emerged the need to understand how the mortgage sector is going to work these days.
With all these facts on the table, many questions appear as well as determinant consequences to the mortgage sector.
Jesús Quintero says that the data reveal that mortgage standards in the U.S. have shot down to the lowest record among the COVID-19 pandemic, which becomes an advantage for latent buyers and homeowners who could be interested in refinancing.
Redfin, an influential Real State Agency, shows on their recent Survey, that 53.9% of potential clients have stimulated their house buying aims due to the decrease in rates. On the other hand, 20.2% of the probable sellers evaluated indicated that the current decline in prices motivates them to take into consideration refinancing and holding on to their houses instead of selling.
Jesus Quintero believes, as it’s understandable, that the influence of low mortgages varies among sellers. In this sense, a seller who has been examining the possibility of scaling down to reduce their residence budget could refinance to a cheaper monthly fee and manage to hold their actual house. Meanwhile, sellers who evaluated expanding to an upscale house are now capable of boosting their budgets with low contract rates.
Since analyzes are to the order of the day, Daryl Fairweather, the head economist of Redfin, declares that: “lower mortgage rates make homebuying more affordable, and that´s a certainty for buyers right now” (Redfin, March 01, 2020). Although, as soon as the outlook becomes more precise about the broad repercussions on trade and people´s income, it will be easier to prognosticate the future of homebuying intention. The likely estimation is that as higher the influence as minor the buying intention.
The Freddie Mac Primary Mortgage Market Survey, also offered information regarding this topic, declaring that the average contract of the interest rate for 30 and 15 years fixed-rate mortgages, declined significantly from last recent years, fluctuating from 4.3 average rates on 16th March 2017 to 3.36 on 12th March 2020 (FreddieMac March, 12, 2020).