Most everything about the housing and mortgage landscapes right now is dictated by three factors: limited home inventory, low mortgage rates and the ongoing coronavirus pandemic recovery. Here’s how those trends played out this week.
1. When sellers become homebuyers, they lose their edge
Mostly because of the aforementioned limited home inventory, real estate transactions are happening at breakneck speeds. That’s great for sellers, but when those same sellers turn around to buy their next home, they find themselves shoulder to shoulder with hordes of other buyers competing over that scarce supply. If you don’t plan ahead for simultaneous real estate transactions, you could wind up without a place to live for a while. Here’s how to avoid that fate.
2. Shopping for your mortgage remains crucial
With rates near all-time lows, you may be lulled into thinking it’s no longer important to seek multiple offers when you’re looking for a new mortgage. You’re likely to get a good deal no matter who your lender is, right? Maybe. But with high-value loans, small differences in interest and other terms can make a big difference in the long run. Even in this ultra-favorable rate environment, it still pays to play the field.
3. Renters prepare: the eviction moratorium is ending
The national eviction moratorium is slated to end at the close of June, and the result could be millions of tenants forced out of their homes. Although federal protections may be coming to an end, if you’re a renter struggling to make your payments, other resources may still be available to help you stay where you are.
4. Should you consolidate your student loans in a mortgage refi?
It may be tempting with low mortgage rates to refinance and roll in other debt, like student loans. While you may be able to save money in interest payments with that strategy, it does come with some drawbacks, including student loan-specific protections and forgiveness programs that will no longer be available if you transfer that debt.
5. Buying a house out of wedlock
It’s wedding season and, because we’re not your mother, we don’t really care if you’re planning to get married anytime soon. Instead, here’s some advice for you if you’re considering purchasing property with your partner without putting a ring on it first.