We are currently living through wild times on a large scale. And the way we have had to conduct business in the wake of COVID-19 has changed as well. Even the way lenders are looking at new mortgage applications has changed.
From Instability to Flexibility
At the outset of the COVID-19 pandemic, the economy looked incredibly unstable. Rates were already low and that sent people out to apply for mortgage refinancing in droves. The mortgage industry’s response? They increased interest rates and fundamentally made it harder for borrowers to get mortgage lending.
But with the Federal Reserve’s involvement in stabilizing the economy, today’s qualified borrower now has access to some of the lowest mortgage interest rates in history. The experts are predicting that these rates will likely stay low throughout the rest of the year. Consequently, for those borrowers who are in a favorable financial position to buy a home or refinance their existing one, financing is now easier and more affordable.
Rate Volatility Turned into a Sigh of Relief
Our current rates have been falling since 2018. With the emergence of COVID-19, it could have forced rates higher. With massive unemployment and home values hanging in the balance, lenders exercised caution.
Even when the Federal Reserve cut institutional rates, lenders remained leary and made it more difficult for borrowers to get credit. But as the weeks ensued, the Fed has gotten more involved and the industry is breathing a tentative sigh of relief. In many ways, it is now easier and more affordable to find mortgage financing in Florida than it was pre-pandemic.
The New Rules to Allow for More Flexibility
To deal with the social distancing constraints of COVID-19, changes were made to allow for more flexibility when it came to real estate contracts allowing for more time to close. Remote lender technology has streamlined approvals and even appraisal rules have been loosened. Credit reporting agencies have now agreed to offer free credit reports through April of next year. The mortgage industry is more optimistic, and lending has been jump-started as a result.
Should You Apply for a Mortgage in Florida Right Now?
Of course, it is a personal decision and predicated on your financial situation and what you can qualify for. Unfortunately, COVID-19 has introduced other challenges with the financial vulnerability of a workforce that is battling layoffs and unemployment.
The good news is that interest rates are expected to remain low for the rest of the year so if your employment and financial situation changes for the better in the near future, rates will still be low. It’s in your best interest to speak with a mortgage professional to see if this is a good time for you depending on your individual circumstances.
Speak to a Professional at Florida State Mortgage Group
If you are thinking about taking advantage of today’s low interest rates, we would be glad to talk with you. Call our certified mortgage brokers at Florida State Mortgage Group, Inc. today at (954) 359-3000 to discuss if new mortgage financing is a good move for you. We serve Ft. Lauderdale, Broward County and throughout the entire state of Florida.
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