August 7th, 2020 9:14 AM by Joan Rusco
Since you’re here reading this we assume you’re also visiting other sites and seeing posts about what a dreadful year this has been. It’s time to take of the mask and see some reality. Things are not nearly as bad as some believe. We’ll explain in this post.
When 2020 began there was underway an economic boom. It would continue until early March when governments (mostly state and local) began shutting down the economy. Tens of millions of people lost jobs, some lost businesses and lifetime savings. But through it all a bright light of optimism continues to shine.
When the stock market was plunging 30% taking with it retirement savings value one economic sector stood strong: housing. Your home value stayed put. In addition to this housing strength the low cost of borrowing remained. No one knows what will happen to interest rates but it is clear they remain at historic lows. Some VA borrowers are seeing mortgage rates at 3% or lower. With house prices holding steady think about what it means to your pocketbook to lock in a loan at 3% for 30 years! Where do you think rates will be in 10, 20 or 30 years? Our active duty military and veterans taking advantage of this today may look back and think it’s the smartest financial move they’ve ever made. \There are other reasons for optimism. Even though tens of millions lost jobs those jobs are coming back at record rates. VALoansMN is still qualifying clients refinancing or buying homes at these historic low rates.
2020 may be an unsettling year in some regards but when we get through this, and we WILL get through it, this smart move in home financing will be something to be proud of and perhaps we’ll think 2020 had its ups and downs but here we are, financially more stable than when it began.