If you’ve been considering buying one of our new homes in Manvel TX, concerns about the Coronavirus may have you wondering, “Is now the best time to buy a home?” The short answer is, “Yes!” Even in these strange times, there are many factors that contribute to why now is a great time to buy a new home.
Interest Rates are Near All-time Lows
For one of the biggest reasons this is a good time to buy new construction homes in Manvel Tx, look no further than current interest rates. In 2019, the average 30-year fixed mortgage rate started at 4.68 percent and steadily declined before closing out the year at 3.93 percent. In 2020, rates are expected to remain mostly stable, not straying too much higher or lower from the 4 percent mark. That being said, on April 16, 2020, the average rate for a 30-year fixed mortgage was 3.56%.
In a recent poll of those considered experts on mortgage rate trends, 92% of those surveyed say they expect mortgage rates to remain stable or even decrease. A recent article on Bankrate.com states: “Rates for mortgages are in a constant state of flux, but they have remained in a historically low range for quite some time. If you’re in the market for a mortgage, it could make sense to go ahead and lock if you see a rate you like.”
Greg McBride, Bankrate chief financial analyst, expects mortgage rates to stay relatively stable in 2020.
“The benchmark 30-year fixed rate mortgage will hopscotch back and forth over the 4 percent mark for much of 2020, remaining low enough to facilitate homebuying and providing ample refinancing opportunities on those trips below 4 percent,” he says.
McBride cautions borrowers to be conscious of inflation, especially toward the end of 2020. Core inflation, as measured by the Fed’s PCE Index, will top out at 2.2 percent, he predicts, which will likely keep the Fed muted on rate hikes.
“Rates will trend higher toward the back half of the year as inflation readings move above 2 percent.”
How will Low Mortgage Rates Affect New Home Sales?
While it’s impossible – and can be dangerous – to make predictions, if the Fed’s attitude is any indication, rates should stay low for the remainder of the year.
One thing rate-watchers should consider is that we’re voting for a president in 2020, which might compel the Fed to take a backseat to the political action in D.C., says Tony Taveekanjana, executive vice president and chief production officer at Gateway First Bank.
“Obviously, there are no guarantees that mortgage rates will stay where they are for all of 2020. One significant factor is that 2020 is in an election year,” Taveekanjana says. “Historically, the Fed moves to the sidelines as it relates to rate hikes or cuts during the election and then steps back in to stimulate the economy by doing what they feel is necessary once the election is over. Based on this, it would be reasonable to expect rates to generally stay in the same area as they are now.”
Another national expert, Mike Hardwick, says mortgage rates near historically low levels will generally impact the real estate market two ways. “In 2020, we anticipate that rates will remain stable. This will cause home prices to increase slightly, but we will also see some improvement in home sales,” he says.
What Does all this Mean for You?
If you’ve been waiting for mortgage rates to come down further, it’s sounding unlikely that will happen in 2020. However, in general, home prices continue to rise – making the answer to the question, “Should I buy a home in 2020?” a resounding “Yes!” for many people.
Buying a Home in Times of Self-Quarantine
You might be thinking, “Okay, I see why now is a great time to buy a new home. But how do I do that while most of the country is under stay-at-home orders?”
At Pomona we’ve gone above and beyond to create a home shopping experience that is convenient, engaging, and most importantly – safe. We’ve worked to create an experience that replicates our in-person process as closely as possible, while keeping both our customers and our team healthy.
Shop Smart. Live Smart.
You can set up virtual or private one-on-one appointments with one of our sales counselors. With all these convenient online tools, and the option to meet in person one on one, there’s no reason to put your search for the perfect new home on hold!
Another way we can make your shopping experience is by working as your “personal shopper.”
- Tell us your home buying criteria.
- Our builders’ online sales consultants will find the floor plans and Live Smart homesites that best match your needs.
- We’ll send your curated results electronically.
Pomona by Hillwood is designed to help you Live Smart. What does that mean? It means our amenities have been carefully designed to promote genuine connection, inspiration and growth. We want to create communities where neighbors become friends, where you feel comfortable lingering on your porch with a cup of coffee, and where you’ll love the tranquility of the location as well as the proximity to every convenience.
Ready to find the home that perfectly fits your family? We’re here to help. Give us a call at (832) 336-6272 or send us an email to get started.