The Great Lockdown Effects on Spending and the Housing Market #189

Market Factors

The housing market during the pandemic presents unique challenges and opportunities. Joel Larsgaard and Matt Altmix discuss the uncertainty surrounding market trends, noting that while mortgage rates are low, housing inventory remains scarce 1. This scarcity, combined with low interest rates, could lead to pent-up demand once normalcy resumes. They advise potential buyers to consider personal factors, such as financial stability and long-term plans, when deciding to purchase a home 2.

If you are under contract on a home that you love and that you plan on living in for a long time, I think, Matt, our advice would be go through with it.

--- Joel Larsgaard

Balancing these considerations can help navigate the complexities of buying a home in uncertain times.

   

Credit Changes

Credit requirements for home buyers are tightening, impacting both new purchases and refinancing opportunities. Joel Larsgaard highlights that banks like Chase now require a minimum credit score of 700 and a 20% down payment 3. This shift underscores the importance of maintaining a strong credit profile and being prepared for stricter lending standards. Matt Altmix shares personal experiences of the challenges faced by small business owners in securing loans, emphasizing the need for thorough financial documentation 4.

Your credit score is going to become even more important as you seek a mortgage with other lenders.

--- Joel Larsgaard

These changes necessitate careful planning and consideration for prospective home buyers.