THE HONEST BROKER: WHAT IS MOTIVATING TODAY’S BUYERS?
The most prevalent motivation for buyer’s today is the low interest rates that are currently available. The rates have even seen a downward trend from week to week. For most buyer’s that have “sat on the fence” about a home purchase, the enticement of receiving an extremely low interest rate is getting them to make their move.
These are today’s rates:
Loan Type Today Last Week Change
30 yr Fixed 3.09% 3.15% –0.06%
15 yr Fixed 2.69% 2.68% +0.01%
30 yr Fixed Refi 3.13% 3.20% –0.07%
15 yr Fixed Refi 2.72% 2.71% +0.01%
5/1 Arm Refi 3.14% 3.13% +0.01%
Most savvy buyers know that their monthly mortgage payment is proportional to the interest rate that they receive. Therefore, their ability to qualify for the loan and the amount of the loan will be greatly improved through lower rates. This and this alone, is a very motivating force to jump into home ownership.
Another motivating factor for buyers to pursue a purchase now is that there is an increased desire to migrate from cities to the suburbs. Working from home over the past few months has proven to be very successful for most businesses and workers and is a catalyst for those previous city dwellers to seek a better quality of life outside of the city limits.
I have personal anecdotal evidence regarding an increased demand for home showings in the past several months. I am fielding more questions regarding the amount of housing inventory and types of homes available.
More people are willing to move from the dense population sites, such as, Miami-Dade, Broward and Palm Beach areas to less populated areas, such as here where we live in Martin and St. Lucie Counties. Working remotely is now considered mainstream and easier now more than ever and has also proven to increase productivity. This has opened the floodgates for expansion into other geographical areas not thought of before as feasible.
Stay well and healthy
Diane Lott, Broker
Paradise Found Realty, Inc. of Palm City
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