July 14, 2020 at 1:00pm | Blair Schwisow
The unsettling events of the first half of 2020 have prompted some Boise residents to adopt a wait-and-see attitude - especially major decisions concerning Boise real estate. For most of the spring, it had looked as if June would be the month when more clarity would surface, starting with how soon Covid-19 restrictions would be relaxed. To some extent, that's been the case-but many other momentous headline-grabbing events have intervened. Clarity about the future has been limited. Even so, throughout 2020's roller-coaster ride, one key element of Boise's real estate component has remained steadfast and encouraging: mortgage interest rates.

Last week, CNBC headlined, "Mortgage demand from homebuyers amazes again." The "amazement" stemmed not just from the Mortgage Bankers Association's report that the volume of buyer applications for home loans had risen 5% in the week: a full 13% above the same week in 2019. It was a volume upsurge that came in the face of rising mortgage interest rates. Albeit, minor any rise is normally some that depresses application numbers.

Explanations were forthcoming-much of it devoted to the pandemic phenomenon and speculation that renters were reevaluating the importance to their families of owning their permanent home base. Surveys also showed that Americans (undoubtedly Boise residents among them) had been saving more and spending less-savings build confidence and confidence inspires homebuying. Consumer behavior seemed to be undergoing considerable change, favoring essentials over non-essentials-and "shelter" definitely belongs in the former category.

Even so, by Wednesday of last week, Mortgage News Daily left the speculation out of its lead headline, simply allowing its readers to draw their own connections: "Quarantines Lift, Mortgage Volume Explodes." Following the Federal Reserve announcement on Wednesday afternoon, the previous interest rate increase also reversed with a vengeance. In fact, by noon on Friday, MND's Facebook Daily Update could headline: "Mortgage Rates Below 3% For 1st Time Ever." They did add "(But Not for Everyone)."

As summer begins, if you are considering buying or selling your own home, Boise mortgage interest rates are, in MND's phrase, "right in lin with the all-time lows." To take advantage of the moment, I hope you'll call!


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