October 30, 2020 | Market Update

Market News 10-30-2020

Mortgage Market Update

Rates Smash Records

Just when we think we have seen lending rates hit an all-time low, they show us they drop lower yet. Mortgage rates fell slightly again last week, with a 30-year-fixed rate mortgage averaging 2.81%, marking the tenth time in 2020 that rates have set a new record low. Rates for 15-year fixed-rate mortgages and 5-year ARMs are also favorable to borrowers, averaging 2.35% and 2.9%, respectively.1

Offices Are Trending

Move over stainless steel appliances and hardwood floors. Today’s home buyers are more interested in a dedicated office space and a reliable high-speed internet connection. Builders took note and are constructing more three-bedroom homes or designing more “flex” spaces so owners can easily convert a room into an office. While roughly 40% of Americans are currently working from home, Forbes projects 20% of the workforce will continue to be remote, even after the pandemic is behind us.4

Home for the Next Generations

Even before the pandemic, 67% of 19-37-year olds said they would rather stay in on the weekends than go out. Their preference influences their desires for home design. They want a mental health retreat that is comfortable, calming, safe, and quiet. They also are attracted by DIY projects that allow them to make a building into their home. While COVID has many young adults delaying their home search, an increasing number plan to search in suburban and rural areas in the future.5

Sources: 1Realtor Magazine, 4USA Today, 5Forbes