What Steps Can You Take to Buy a House During an Economic Recession?

What Steps Can You Take to Buy a House During an Economic Recession?

The spring bloom in 2020 saw a different light as the onset of the COVID-19 pandemic caused many Americans to lose their jobs as the financial market dropped precipitously. As we enter 2021, the market situation still seems challenging. So, what are your options if you have been planning to buy or sell a home?

The housing market has historically shown that after every harsh recession that results in the deflation of housing costs, the prices tend to rebound slowly. This is generally true when the interest rates are low and banks have enough cash to lend to creditworthy borrowers. Experts believe that this is going to be the case for the foreseeable future for both homeowners and buyers.

Understanding the Opportunity in The Market

The market may not be good for flippers but if you are someone who is moving for a job, or family or any other reason you can take a deep breath and move ahead with your house hunting. If you are planning to stay put, you can take this as an opportunity to refinance your mortgage. As per data received by the Mortgage Bankers Association, March 2020 saw refinancing applications go up by nearly 80% with jumbo rates at 3.58%, something that was not observed since 2011. Moreover, the average conforming rates have been at 3.47%, a level not observed since the last financial crisis. If you are looking to refinance your house, contact a mortgage professional who can help you lock in a good rate and take the necessary steps to ensure that your refinancing gets approved.

Analyzing the Real Market Conditions

If you are a buyer or a seller looking to evaluate the housing market situation, there is no better way than to conduct your own research. Since the pandemic has brought in new social distancing rules, the online marketplace is the best way to understand the market and perform simple tasks related to buying or selling. Almost 90% of homeowners and buyers are now starting their search online through websites such as Google, Zillow, and so on to understand the competitive dynamics in the market. Many websites are even providing sellers the option to easily list their homes on the market through their online portal that requires you to only fill in some basic information, selling price and upload photos.

Seeking Help from A Good Mortgage Professional

If you want to buy or sell a house in this rough market climate, it is recommended to hire a mortgage professional who can assist you in smoothening the process. A mortgage professional with a full range of virtual services can provide you with options like video conferencing, virtual house tours, and provide the latest expert advice at the lowest rates. A seasoned professional will take up some of the tedious tasks, so that you can just sit back and wait for offers to come. An experienced mortgage professional can handle everything right from escrow, title, insurance, mortgage services, and even repairs through their online services thereby helping you get business done even in challenging times. The mortgage experts at Rex Homes have some additional information on what you can do during these difficult times on their blog here: https://blog.rexhomes.com/what-to-do-when-the-housing-market-and-the-world-get-turned-upside-down/