As states started to reopen businesses and financial institutions, the lowered interest rates are very encouraging for home buyers as well as existing homeowners who may need to refinance. This tells me that many borrowers can afford to buy homes and/or are able to lower their interest rate and their monthly mortgage payments. This is of course a positive thing during this struggling economy.
More houses are coming into the market to meet the increased demand for housing, this in turn shows how the supply and demand factors play a role in determining the home value and home prices.
What about those who lost their jobs, lost their monthly incomes, their reduced business incomes and all that? The spike in unemployment claims are still bad news till last week. But we are seeing that people are finding work or have gotten rehired. The trend continues as the U.S. economy continues to reopen. The direction in which job situations are developing this week is encouraging.
While an array of factors such as these- viz. home loan rates low, people are getting jobs and many going back to work, housing demand remains strong- we should expect a positive housing market and wide scope for the economy to continue to improve.
Good luck to you all!