Interest rates have created big opportunities for homeowners looking to refinance and for home buyers looking for a property. But it looks like a seller’s market.
The Data & Analytics division of Black Knight recently assessed the refinance market when interest rates dipped below 3 percent (they briefly jumped after that but have settled under 3 percent again).
The firm found that at this rate, a record 18.1 million homeowners have incentive to conduct a do-over on their home loans. Black Knight estimates those who stand to benefit from a refi could realize an average savings of $289 per month.
Low rates are benefiting many potential homeowners, too. With money so cheap to borrow right now, you spend less on interest over the term of the loan, so you can afford more house.
Black Knight says that means “the average home buyer can afford nearly $32,000 more home than they could at the same time last year, while keeping their monthly payment the same.”
It’s a good thing you can afford more home, because home prices in Texas have surged, even during the pandemic. The Real Estate Center at Texas A&M University tallies this up by comparing July 2020 to the same month for the past two years.
And North Texas home prices are rising, even in the pandemic. The median home price in the Dallas MetroTex market went from $309,500 in July 2018 to $337,000 in 2019 to $355,000 in July 2020. Even during the pandemic, prices keep rising.
That is, in part, because a lack of listings have made this a strong seller’s market. In July 2019, the Dallas MetroTex real estate market had 4.5 months of housing inventory. In July 2020, there were just 3.5 months of inventory.