Every time we talk about the mortgage rates dropping, there is a sense that this is the
lowest it could possibly get. As of October 15, 2020, for the 10 th time in 2020, mortgage rates
have dropped to a record low. The average rate for a 30-year fixed rate mortgage (“FRM”) has
dropped to 2.81%. As usual, the record low mortgage rate paired with record low inventory has
resulted in massive price increases on the available homes.
The median listing price of homes between October 3, 2020 and October 10, 2020 is
roughly 12.2% higher than October 3, 2019 through October 10, 2019; this is a direct result of
low mortgage rates and a 38% decrease in inventory when compared with last year.
A natural result of being cooped at home during this pandemic is that people are placing a
premium on the size of their homes (it’s not entirely logical, since the pandemic won’t last
forever, but this is still good news for home sellers). As a result, homes that are priced well are
taken off the market within hours, often receiving multiple offers well over asking price.
We can expect this trend to continue, as most experts believe that rates wont return to
“normal” until next year; some experts suspect the rates could drop as low as 2.6% in the next
few months. The major takeaway? If you are considering selling your home, do it now – the
market conditions are incredibly favorable.
At the Chernov Team we understand that knowledge is power, and knowledge of market
conditions is powerful knowledge indeed. At the Chernov Team we know that whoever comes to
the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.