The pandemic struck like a bolt from the blue, threatened to destroy every social activity especially economic activity. Buying and selling homes figures among the most basic business function along with the food and clothes. But the potential loss of jobs and strict enforcing of social distancing adversely affected the real estate sector. Buyers were very scared to go out and inspect the houses.
Real estate sector responded proactively to this pandemic, some swift economic measures were taken to offset this loss, especially mortgage rates were reduced to a record low level to entice buyers to buy homes. Also, people did not lose the jobs to the extent, as was expected previously.
With jobs at hand and mouth-watering mortgage rates, a flurry of economic activity slowly started, and people started purchasing homes. The month of June saw a return to the pre-pandemic trend of sales and purchase of houses.
The Fannie Mae Home Purchase Sentiment Index® (HPSI) for the month of June saw a healthy growth of 9.0 points to 76.5, which was a healthy increase from the month of April that saw the lowest sales since COVID-19 struck.
This index is evaluated based on 6 categories. There has been a marked increase in 4 categories monthly with selling conditions, buying conditions, home price outlook, and household income showing healthy growth. Job loss though has seen some dip but stays stabilized. Mortgage rate outlook saw a dip in the month of May but stays higher that what it was about an year ago.
Though the pandemic remains a challenge to be overcome but business is back, so is the selling and buying of homes. If you need any assistance in making most of these low mortgage rates and purchase a new house, American Made Home Solutions is all here to assist you.
