First the bad news, which will hardly come as a surprise: The purchase market will be down in 2020. Uncertainty amidst the coronavirus is influencing decision- making for both buyers and sellers. With new construction projects at a standstill, inventory will remain tight and affordability may get even worse.
The silver lining is mortgage rates have never been lower than they are today. In April 2020, the average rate for a 30-year fixed mortgage fell to the lowest level ever recorded at 3.23%—just beating the previous record met in March earlier this year. While refinance volumes have already skyrocketed, however, surging unemployment and lower wages will slow the resale of existing homes for the next several months and maybe longer.