August Recap: Events Moving the Real Estate Market
Throughout August, the economy has gone through some interesting events. It’s important to stay up-to-date on the relevant fluctuations. For real estate, things are going well. The pandemic has boosted the market, and house prices have soared. Here’s what you need to know about real estate right now and how it affects the wholesale mortgage market.
Covid-19
Since global shutdowns, the economy still hasn’t recovered. New variants make the future uncertain, and restrictive regulations are still in place around the world. The United States continues to do well with all things considered. The S&P 500 is still rising. All significant benchmarks are up by 12%, and some normal volatility is returning. Some of the instability is because of the uncertainness surrounding the Delta variant. Depending on how the general public reacts to the variant, there will be some predicted choppiness in the market.
The FDA has granted full approval to the Pfizer vaccine. It’s predicted that this will cause a ripple effect of new regulations in hospitals, colleges, and many other American businesses. If this slows down the virus, it’s likely to impact all investment types positively.
Mortgage Rates
The rate for a 30-year mortgage increased to 2.99% over the summer. It’s uncertain whether or not they will remain this high. The supply of homes for sale is growing to meet the demand, which means that the rate of buyers requesting mortgage applications has started to fall. Despite this, the sizes of home loans remain high. This could be a sign that prices are being elevated by intense competition.
Find a Wholesale Mortgage Lender
The housing market has been doing incredibly well this summer. According to the National Association of Realtors, home sales have risen 2%. A few believe the market will start to slow but continue to grow if at a slower rate. It won’t stay that way forever. Signs of decline are already showing up. Don’t be fooled by the negative effects of the pandemic. Now is a better time than you’d think to find a wholesale mortgage lender. Consulting with a wholesale lender is a great way to get information about the market because they keep a pulse on the market and know what’s happening in the industry.