As June began, we are optimistic that the housing market will continue to gain steam, despite April’s poor numbers. Existing home sales were rough in April, dipping to their lowest levels since July 2010 and showing a 17.2% year-over-year decline and a decline of 17.8% between March and April. The month of June on the Outer Banks was incredible for real estate sales and mortgage applications.
However, NAR Chief Economist Lawrence Yun also shares an optimistic outlook, stating “The economic lockdowns have temporarily disrupted home sales. But the listings that are on the market are still attracting buyers and boosting home prices.” These are both signs of a healthy housing market.”
In addition, mortgage applications for purchase homes gained for the sixth consecutive week and are 6.7% higher than they were a year ago, before the COVID-19 pandemic began.
This number should continue to grow as our state and local community begins to re-open its doors after the lockdown. Buyers who temporarily paused their home search will begin once again, more determined than ever to purchase a home that fits their needs. In more good news, rates for a 30-year fixed mortgage have hovered below 3.30% for weeks, according to Freddie Mac’s Primary Mortgage Market Survey, and are expected to remain low, giving buyers more buying power.
Freddie Mac’s analysts also stated that they have witnessed an incredibly fast increase in home purchase demand and believe that going forward, mortgage rates have room to decline as mortgage spreads remain elevated.
Everyone sounds very optimistic about our 2020 season. We welcome back all of our homeowners and visitors. I’ve been told some Real Estate Companies are breaking booking records and Management companies are reporting the same. I think fall is going to be extremely strong here in the Outer Banks. Between all the refinances, new construction loans and the purchase contracts, May has been one of best months I have ever seen in the mortgage industry. If you have any mortgage questions, it would be my pleasure to talk with you. TowneBank Mortgage can help you with any of your mortgage needs.
TowneBank Mortgage – Your Hometown Mortgage Lender.
NMLSR # 94785
Mortgage Loan Officer
P.O. Box 1578 | 4629 N. Croatan Hwy
Kitty Hawk, NC 27949