Since rate tracking began in 1971, the lowest mortgage rate we’ve ever seen happened in September of 2020. Averaging just 2.86%, these all-time low rates helped boost home sales in America and encourage economic recovery amidst the pandemic.
In fact, mortgage rates have been falling steadily for the better part of the year, as the Federal Reserve braced for the financial impacts of millions of lost jobs. Though the future of COVID is still unclear, low rates have contributed to high buyer demand, meaning people are having an easier time selling their homes than normal.
Take, for example, a NOVA employee working at our corporate office who recently decided to move into a new home. “We weren’t expecting to move, then BAM, our dream home hit the market,” she says. “We knew it would go quickly, so we scheduled a showing that same day. We put in an offer, they accepted, and suddenly, we were in the position of having to sell our current home.” However, she says that when she and her husband put their home on the market several days later, they received three offers within 12 hours. “People know they have to be aggressive to get the house they want right now, so they’re acting fast.”
Low rates are a great thing for first-time homebuyers or those with less-than-perfect finances, but the mad rush to take advantage of these rates leads to low inventory and an aggressive seller’s market. If you think you’ve found your dream home, don’t wait! Get prequalified today so that you won’t blink and miss it!