Mortgage Market Update: Rates Near All-Time Lows, Activity Brisk

July 28th, 2020

Mortgage lenders report that current historically low rates are driving heavy activity—even despite pandemic and related economic factors

Banking metrics continue to indicate strength in the home financing market this month as the Mortgage Bankers Association’s weekly index reported a 5% increase in mortgage applications for the first week of July.  This combines with earlier growth to push the total number of mortgage applications 33% higher than just one year ago.

Centra Homes preferred lender Michelle Eder says that she is not surprised by the numbers and has seen the corresponding increase in lending firsthand:

“Rates are at an all-time low, it is a great time to buy a home or consider refinancing.  We’ve certainly seen that reflected in our activity levels.”

—Michelle Eder, Centra Preferred Lender, Bell Bank Mortgage

Eder says that she’s seeing strength across the board, but notes that two key drivers of the trend are home refinancing and new construction activity– the latter her specialty.  She says that the breadth of demand has not been limited to one type of client nor to a specific home type.

“For new construction loans we are seeing a good mix of move up buyers and new first time buyers, both driven by rates and the corresponding lower payments,” says Eder.

In terms of financing trends, Eder says down payments for buyers typically range from 3-20% and most of the activity she’s seen is focused on 30-year conventional mortgages, but that flexibility encompasses everything she does:

“I enjoy modeling scenarios for my clients to ensure we land on the best mortgage option for their family.  That always begins first and foremost with a deep understanding of their situation and objectives.”

Centra Homes President Dale Wills welcomes the strength in lending and says that sales have been strong for his firm as a result.  He notes that even in the midst of the pandemic, his firm remains well-positioned to provide the inventory to meet rising demand:

“We have six active communities including townhomes and single-family home options in the north metro, with more added each month. So there are options for all types of buyers.” 

Wills credits Centra’s ability to adapt its business model as a major factor in activity levels, keeping buyers, contractors and employees safe throughout the pandemic:

“We have a rigorous process including cleanliness checks, wellness guidelines and an increased focus on technology.  Our team has done a great job of adapting and our buyer survey responses show it is working for clients.”

He says that even in these unusual times, low rates and high inventory combine to make it a great time to consider a new construction home.  

“ With a proven, simple and safe process coupled with great partners like Michelle, we are confident consumers will like their options at Centra.”

— Dale Wills, President, Centra Homes

To begin exploring Centra Communities that may be right for you, please visit CentraHomes.com.

For more information on rates and the mortgage process, potential buyers are encouraged to reach out to Michelle Eder directly at 763.278.4808