How Will the Housing Market Be Affected by Coronavirus?

How Will the Housing Market Be Affected by Coronavirus?
by Kevyn Pitts - June 22, 2021

Wherever you are in the home buying process, there’s a new opportunity waiting just around the corner. Mortgage rates have risen slightly and COVID-19 is coming to an end soon, but down payment assistance programs still exist for those with FHA loans or who meet income requirements. In this blog post, we are going to discuss how will the housing market be affected by coronavirus.

Effects on Mortgage Rates

The rates are changing daily and it is best to be aware. Keeping an eye on them at least once a day, comparing the different options available, and working with mortgage brokers will help you get the most favorable rate possible for your loan.

When the economy is struggling, banks are more hesitant to approve mortgages because they want to minimize risk. As a result, it's important that you know your financial situation well and be prepared with documentation before meeting with lenders for mortgage preapproval.

Effects on Down Payment Assistance Programs

It would seem that the housing market uncertainty has not impacted down payment assistance programs. However, you can expect delays in application processing due to more program administrators dealing with remote workers and staff shortages. These changes are in preparation for a future without e-closings or electronic signatures on loan documents so if this is something of interest then it might be best to take care of your requirements now before these options disappear!

Effects on How You Look at Homes for Sale

Real estate agents are using new technologies to help home sellers and buyers better navigate the COVID-19 crisis. Virtual tours on smartphones allow for a virtual walkthrough in real-time, enabling clients to ask questions or offer feedback without wasting their valuable time together. With this modern twist on traditional marketing techniques, Realtors can more than meet these challenges head-on - they have already helped many families across the country find homes that will suit them during uncertain times!

There are many precautions that real estate agents take to ensure the health and safety of their clients. For example, some will sanitize properties between viewings or restrict viewing hours so as not to put buyers at risk for illnesses like Ebola when they arrive.

Effects on the Inspection, Closing, and Moving Process

  • Inspections can still happen. Home inspectors may request special considerations and may decline to deliver an in-person report, but you should always ask what precautions they are taking for their own safety when dealing with the home inspection process.
  • Closings can occur with special allowances made to reduce the number of people in a room. Also keep in mind that agents, escrow officers, attorneys, and closing agents may be dealing with reduced staff and shortened office hours which means normal processing could take more time than usual.
  • Moving can still happen but it could be restricted to the state and local level. Movers should check in advance what is appropriate for your family's safety when moving from one place to another, as well as theirs.

I hope this article was helpful in understanding how will the housing market be affected by the coronavirus. You can also read about what is listing agreement in real estate.

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