The Fed: The old Wall Street saying, “Don’t Fight the Fed” will continue this year after the new asset purchase program began in March of 2020 when COVID-19 spread throughout the U.S. That prompted state economies to shut down while a chill was sent across the U.S. financial markets. The Federal Reserve played a critical role in stabilizing the markets. The aid to the mortgage market helped fuel the incredible housing environment in 2020. With unemployment too high and inflation too low, expect the Fed to continue purchasing bonds to hold home loan rates low well into 2021, thereby supporting the housing market while fueling home purchase activity.
Employment: Having a steady job with security at the workplace is also a key element. With widespread vaccine distribution and new therapeutics coming to the market, there is reason to believe the unemployment rate will continue to decline. Millions more Americans will be back to work and will have a chance to take advantage of the opportunity in housing. Low rates are great, but you need a job to purchase a home. Â
Working From Home: And due to the new work-at-home trend, many companies both big and small have come to the realization they can be very productive with employees working from home. So, in addition to providing shelter and long-term wealth, would-be homeowners are now attracted to the idea of buying a home where they can work.
Bottom Line: Owning a home is one of the many American dreams. With rates still at historic lows and the economy on the rebound, now is a great time to get off the fence and dive into the pool of home ownership.
Source: Mortgage Market Guide
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