/Virus Creates Opportunities for First-Time Home Buyers

Virus Creates Opportunities for First-Time Home Buyers

The sociological impact of the novel coronavirus has been undeniable. Americans — millennials, in particular — are leaving big cities behind in favor of the more spacious suburbs.

The shift coincides with unprecedented work remote opportunities and record-low mortgage rates, creating opportunities, and hurdles, for those in the market for a home. (Fox Business)

“It is a competitive environment among buyers,” Dr. Lawrence Yun, chief economist at the National Association of Realtors, told FOX Business. “The good news is that mortgage rates are low.”

A red-hot housing market despite the coronavirus downturn has left buyers with little inventory to choose from and has led to multiple bidders driving up the average home price by 5 percent nationwide, compared with last year.

However, record-low mortgage rates mean the average monthly payment for a medium-sized home has fallen 7.36 percent nonetheless — to $1,007 in May, down from $1,087 the year prior.

The 30-year fixed mortgage, which during the week ended July 16 dipped below 3 percent for the first time, is a “great incentive for first-time homebuyers,” Jerry Howard, CEO of the National Association of Home Builders, told FOX Business’ Stuart Varney.