Home Purchases Rocket Amid Low-mortgage Rate Environment
It’s that time of year when the sale of homes starts to exhibit a considerable slowdown across the states. However, this year, Corpus Christi is bucking that trend. In fact, property sales throughout Texas are on the rise.
Between the end of the second quarter and the end of the summer selling period, the Texas housing market saw the sale of an additional 100,000 homes. According to MPM Home builder Moses Mostaghasi, the increase in sales was observed across the industry as a whole, which netted an overall growth of 10%.
In addition, on a local level, sellers are reaping a 5.5% increase in the median price, of $210,000, and buyers are benefitting from access to more properties on the market throughout the state.
Roman Escobar, the Chief Lending Officer of Navy Army Community Credit Union, attributed the increase in home sales that was observed over the summer period to reduced mortgage rates. Indeed, the average mortgage rate available on a 30-year fixed-rate mortgage reduced by 3.5%, the lowest level observed since 2016. Escobar was quick to stress that now is the right time to fund the purchase or construction of a new home as there is an inherent lack of certainty surrounding how long the rates will remain low.
Homeowners who purchase their properties when mortgage rates were elevated can also seize the opportunity to refinance and, thereby, benefit from lower interest rates.
In recent months, reduced interest rates have also had an impact on the economy as a whole: “It influences how people shop, it influences taxes, it influences some economy factors in local areas and global economies that actually are paying huge dividends,” said Escobar.
So, if you’re considering buying a new property, refinancing your existing home, or even constructing a new house, now is most certainly the right time. The only question is this: Can builders construct properties fast enough to rise to the growing demand?