2020 in a Nutshell

WebMax Digital Mortgage Solutions
  Author: Kenice Brown

Surely, everyone can agree that this year has been a roller coaster. There have been so many situations occurring throughout the seasons that have drastically changed the housing market. Looking back, it’s still baffling to recall just how hectic this year has been. It’s also important to note that these unusual occurrences turned charts over, making it astonishingly difficult to analyze trends, and estimate what the future will hold. Between full coast wildfires and global spread viruses, we’ve really had our work cut out for us.

To address the elephant in the room, the Covid19 pandemic has definitely rocked the boat this year in the housing market. Since its arrival, unemployment has skyrocketed, as well as the cost of living, leaving many homeowners and renters in financial panic. Typically speaking, one fourth of Americans spend more than half of their earnings on rent or mortgage. With the impact from quarantine, a large number of employees were laid off or were forced to drastically reduce work hours. The World Bank states that “Covid-19 could push 71 million people into extreme poverty”. Despite these hurdles and unfortunate situations, there has been an increase by eighteen million in home sales since 2019. This is most likely due to the average sales price of housing dropping by tens of thousands of dollars since this time last year and mortgage rates reaching record lows within the past month due to the pandemic.

Additionally, digital job opportunities have also played a big part in keeping the economy afloat for the most part as being able to work remotely has become a more necessary aspect of living in the United States than ever before. The effects of the nation falling into an official recession have driven a multitude of home buyers and owners to take advantage of low prices and rates to purchase and refinance homes. Many millennials who are also already accustomed to being in debt from school tuition and are more likely to cooperate with digital approaches are also swimming in the market. This means that the digital mortgage industry is at a very busy, beneficial standpoint at the moment. In comparison to 2019, more people have opted to apply for mortgages online this year and prefer the convenience of mobile applications. However, it’s not an easy task figuring out what this all means for the future.

It’s more than likely that the digital half of the economy will continue to boost sales due to its convenience and the comfort of avoiding contact with others. Mortgage rates consistently dropped until it reached unprecedented levels, but is predicted by many professionals to float around the same area until the beginning of 2021. Then, we might see rates rising again as it did post election in 2016. Only time will tell for sure as the Covid19 virus continues to peak in the US. With everything being said, it is certain that the mortgage industry will have to rely more on online presence in the upcoming years if lenders want to cater to the expanding audience of situational mobile users.

About the Author: Kenice Brown is the Success Manager at WebMax, a software development and internet marketing firm hosting enterprise level mortgage and real estate websites and offering an award-winning digital mortgage Point of Sale application. You can reach the author at [email protected] or contact WebMax to start maximizing your online experience today.

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