February is the month for celebrating love, but if you are not in love with your home this may be the perfect year to consider a move. With a buyer heavy market, meaning that inventory levels are extremely low in Michigan, the market is currently favorable for sellers. Don’t be afraid of purchasing a home during the COVID-19 pandemic because mortgage lending standards are loosening, despite a projected rise in delinquencies.
So what does this mean?
The housing market is placed in a situation where homes affected by the financial downfalls of COVID-19 will be brought to the market allowing a better position for available buyers to scoop up properties as they become available. If this ideal situation happens, it would prove a dramatic contrast to that of the financial crisis that tightened credit standards in 2007-2020.
High-income households have proven to be in a far better financial situation rather than low-income households. The speculation about easing credit standards was last derived from the Federal Reserve’s latest survey. It concluded that banks began to ease lending standards at the end of 2020 and banks will be expected to continue easing standards as risks lessen.Add media to your posts
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As the economy reopens and the COVID-19 vaccine beats back the threat of the virus, economists expect this loosening of credit will only increase consumer demand for loans, including mortgages. Believe it or not, during the pandemic, a record number of U.S. households reduced their debt load, giving them a better shot at obtaining a new mortgage.
Are you considering a move this year?
Stand out against your competition with a strong pre-approval letter.
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