Home sales during the pandemic are strong, and buying will only get easier.
It’s no secret that COVID-19 has left a trail of economic ruin in its wake. From sky-high unemployment rates to ongoing bankruptcies, the global pandemic has wreaked serious havoc on the U.S. Fortunately; there’s some light in the darkness.
With favorably low mortgage rates and promising refinancing options, the housing market is booming. In fact, during the third quarter of 2020, roughly 67 percent of Americans owned a home, which is the highest this figure has been in 12 years. As the coronavirus continues to plague our communities, here’s how the real estate market is expected to respond positively.
Interest Rates Likely Won’t Change
The Federal Reserve forecasts that interest rates will remain close to zero until 2023. According to Jerome Powell, a chairman of the Federal Reserve, these figures won’t shift much until the economy is well on its way to recovery. This prediction bodes well for a fortified labor market. What’s more, the Fed’s transparency regarding lower interest rates is proving a godsend to mortgage lenders. More specifically, it’s allowing them to plan for the prosperous year ahead.To keep up with growing demands, some lenders are expanding their workforce. These expansions highlight the growing interest in purchasing real estate. Unfortunately, though interest rates aren’t likely to change, home prices are. These increased rates will make homeownership less accessible, but it’ll be a more viable option than renting. In essence, rosy interest rates will combat elevated home prices, inspiring many to refinance or buy a home.
Less Mortgage Forbearance Requests
When COVID-19 reared its contagious head, there was an uptick in forbearance requests. Since April, these requests have gradually decreased, and experts believe that this downward trajectory will continue. However, millions of American homeowners are still on a forbearance plan. As a result, lenders must maintain a relationship with borrowers so that they can stay afloat.As these numbers stay on a constant decline, homeowners have demonstrated their unwavering resilience during this economic hardship. As more funds become available to those with coronavirus-related financial problems, these same homeowners will be rewarded for their ability to overcome unprecedented hurdles. Not only will this impact borrowers, but it’ll also be advantageous to lenders.
Lenders Are Putting A Premium On Customer Service
The ins and outs of obtaining a mortgage are undoubtedly intricate. With so many moving parts to account for, lenders were forced to develop creative solutions when COVID-19 took hold. This adaptability ushered in a new era of customer service, illustrating the importance of catering to clients’ ever-evolving and unforeseen needs. During these times, that meant finding safe alternatives to face-to-face encounters.When traditional operations changed, it led to an increase in remote online notarization services. Simply put, RON allows consumers to notarize documents electronically. In addition to being wildly convenient, this modern replacement also promotes a streamlined process. As mortgage lenders continue to devise sensible substitutes, they’re displaying their commitment to client satisfaction. These efforts make it easier for aspiring homeowners and borrowers to receive quality services without compromising their health.
A Better Way to Close with BNNServices
Since 2008, BNNServices has been trusted by title agencies, mortgage lenders, servicers, and consumers to perform loan and document signings in multiple languages across the country.
Unlike other signing services, BNNServices “touches” every file 8 or 9 times to ensure the process moves forward free of delays. That’s why we’ve completed over 250,000 signings in all 51 jurisdictions and maintained a closing ratio of 96 percent.
Ready to experience the BNNServices difference? Get started today!