Historically low interest rates vs the pandemic

The current pandemic has darkened our lives in so many ways that it’s almost unimaginable. Countless lives lost, hospitalizations, businesses going bust, and loss of livelihoods have taken their toll. And even with the new vaccine, we are still not out of the woods. One positive thing has happened, however: historically low interest rates have caused a jump in home sales and refinances.

Super low interest rates have given the housing market a kickstart, almost like never seen before in recent history. For example, the rate for a VA Streamline 30-year fixed refinance has been 1.75% for several weeks. Buyers have been out in force actively hunting for the best homes.

 “The housing market is likely to do well in the next couple of years,” according to Ralph McLaughlin, chief economist with Haus, a financial technology company. The overall outlook for the housing market remains positive. However, if unemployment doesn’t recover soon, the number of foreclosures could rise significantly.