Delta doesn’t really have a silver lining because there is nothing good about the delta variant of the coronavirus. The resurgence of the pandemic that started almost 2 years ago has been extremely difficult. But for home buyers, it might be a silver lining because mortgage rates have been at an all-time low.
Many people assumed that mortgage rates and housing costs would rise after the pandemic was almost over because mortgage rates have been at an all-time low since the winter. However, many people are wondering why mortgage rates have stayed so low even though many other parts of the economy are steady or even increasing.
Mortgage rates are tied to yields on treasury bonds. These are influenced by investor concerns about inflation and economic growth. Right now, inflation is extremely high because the overheating economy pushed yields higher.
The start of the contagious delta variant also sent inflation through the roof. The delta variant led to delayed reopenings and lower the growth of the economy. This directly means lower long-term interest rates and mortgage rates will continue to stay low.
Lower rates mean that borrowing for mortgages is much lower than it normally would be. Another issue though is that inventory for houses is lower than normal because fewer people are moving and relocating for many different reasons. The supply of houses has improved some, but it still proves to be a major issue.
What Do Lower Interest and Mortgage Rates Mean for Me?
If you are in the home buying market, now is the time to buy a house. Even though the supply is low, it’s steadily increasing. Low mortgage rates and low interest rates mean you will get a house for a much cheaper price point, and you will be able to get a loan with lower interest than normal. Both of these factors mean now is the perfect time to buy a house.
However, on the other end, selling a home is not easy at this time. You might even get less than you paid for. If you have a lower price point, you might be able to sell the house easily but you will not make money off of it.
Should I Buy a House Now?
If you are looking to buy a home for the first time, now might be the best time. You will have a hard time finding rates and interest as low as they are now. Mortgages might even be lower than rent prices on certain homes and apartments depending on the state and area you live in.
Now is also the time to buy real estate property or rental properties. You will be able to get homes for lower price points and then be able to rent them once the economy gets back up and people begin to move and rent new places.
Even though the delta variant of COVID has caused a lot of damage, the housing and mortgage rates are at an all-time low.