Hot Housing Market Continues into 2021
With coronavirus vaccines rolling out and a government stimulus likely to come, forecasts for next year’s housing market and lending environment are optimistic.
Purchase applications have increased 26% year over year; that’s 30 weeks straight of gains. At the same time, mortgage interest rates have hit their 14th record low this year. Fannie Mae estimates that 2021 will see purchases, refinances, and sales continue the upward trend we have seen over the 4th quarter, while 30-year fixed mortgage rates will continue to average between 2.5-3% for the next year.
Why is this important? Interest rates are driving the market at every price point. Buyers are moving their money out of the stock market and into housing. They are excited and ready to purchase, propelling a demand that will continue well into 2021. We have been experiencing bidding wars in Southern California; in fact, San Diego had the highest percentage of bidding wars of the 24 largest metro areas in the U.S., at 75.3%.
Now more than ever, it is important for sellers and buyers to be pre-approved and ready to compete and succeed.
For sellers, getting pre-approved before you put your house on the market will ensure that you are qualified to purchase your next home. For buyers, pre-approval is critical in having your offers even considered in such a competitive market.
More importantly, at San Diego Funding and Great Pacific Funding, we gather all documentation so you understand the loan programs you're qualified for and the timelines for approvals to negotiate contingency removals realistically.
2021 is going to be at a fever pitch from day one. Financing is key and who you work with is more important than ever. Contact one of our experienced loan officers to get started.