'An incredible opportunity.' – Brokers say it's best time to buy after mortgage rates hit all-time low

According to Mortgage News Daily, the average rate on a 30-year fixed mortgage just fell to 2.87 percent – which is down a full percentage point from last year.

News 12 Staff

Jul 27, 2020, 12:36 AM

Updated 1,403 days ago

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The dream of home ownership is becoming an attainable reality for more Americans. 
According to Mortgage News Daily, the average rate on a 30-year fixed mortgage just fell to 2.87 percent – which is down a full percentage point from last year.
Some lucky borrowers are getting even lower rates, depending on the lending institution.
"I see this as an incredible opportunity for buyers. Rates are under 3 percent now. This is an incredible opportunity for today's homebuyer," says associate broker Debbie Valentino.
In the current COVID-19 economic climate, where millions have lost jobs or have had their incomes otherwise reduced, many are ditching life in high-cost big cities, in favor of living in the suburbs.
Valentino says, "For people who are seeking to be close to the city and in Westchester County, lower Westchester is a good option, because the taxes are the lowest. Plus, it's a 35 to 40 minute train ride to Manhattan."
This good news for buyers also comes with a downside, especially for property owners in large cities.
"Since COVID, people of all ages are running as fast as possible out of the cities, New York City in our case, and going to New Jersey, Long Island, Westchester," says Certified Public Accountant Andrew Kabathnick.
Plus, pandemic anxiety is making some lenders and mortgage investors nervous. They're worried that more Americans will lose their jobs and their ability to make their monthly payments, or that the country will go into lockdown again.
"To qualify for these mortgages, you have to have a steady income, you have to have steady W-2 income. Because of COVID, a lot of people have taken a hit on their incomes," says Kabathnick.
Ultimately, the current downward trend in mortgages boils down to both good and bad news, depending on whom you ask.
Rates are at a record low and could drop lower, especially if the economy shuts down again – but realistically, no one wants to see that happen.


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