NORTHWEST ARK., (KNWA/KFTA) — If you’re in the market for a new home, this might be the right to time buy. Mort
Arvest, Senior VP, Mortgage Lending Manager Maria Lau said, “often times bad news in the economy is very good news in the mortgage rates.”
“The coronavirus is having an effect on the markets and the markets are having an impact on the interest rate and people are liking where interest rates are looking now,” said Weichert Realtors, VP Executive Broker Marcus Necessary.
The coronavirus’s impact on the economy has led to plunging stocks and forced the Federal Reserve to cut the emergency interest rates. Meanwhile, mortgage interest rates continue to drop. Lau said its bringing more people in the doors.
“With the results of the lower mortgage rates for the long term rates, the 15 and 30 years fix rates. It gives people the opportunity to borrow more money because they can afford more,” said Lau.
Necessary said interest rates fluctuate every day but whether it’s to buy or refinance the time is now. “I’m hearing 3% for 30-year note and 2.75% for a 15-year note, those are the numbers that get thrown around. Those are the numbers buyers are hearing and really getting them excited.”
Although, this has created other challenges for those in the industry. “We’re seeing low inventory which is creating some challenges for some buyers and sometimes we aren’t able to even see a home because it sold so quickly. So the great market has created some challenges but the demand right now is very strong,” said Necessary who still recommends speaking to a mortgage or real estate professional before making major financial decisions.