July 2020

Average U.S. mortgage rates for a 30-year fixed mortgage fell to an all-time low of 2.88% this week, the eighth time in 2020 the weekly rate has set a record in a Freddie Mac series that goes back almost five decades. Low mortgage rates help to support real estate demand by making it possible for more buyers to qualify for loans. This is because cheaper financing lowers monthly mortgage bills, which are compared to income to qualify applicants. Low rates also support price growth because buyers typically qualify for bigger mortgages. The problem?Fewer homes for sale! Due to supply and demand, sale prices will continue to increase much to the chagrin of today's buyer looking for a "Coronavirus discount". Unfortunately, there is no such discount in Alameda due to the strong buyer demand and the nationwide low interest rates. Homes prices are up and when August typically hits there is a big summer slowdown, but as we know 2020 is anything but typical.