Are you tired of hearing the word unprecedented? How about the phrase “new normal”? If you feel like you can’t turn on the TV or listen to the radio without becoming exhausted from it all, you’re not alone. It seems that every day, there’s something else to be overwhelmed by. Here’s one thing you can be glad to hear: the American economy is bouncing back and that means great things for current homeowners as well as those looking to buy or sell. Let’s look at the reasons why.
Small Business Is Back
Many people supported their communities the past 24 months by shopping locally and it makes sense to believe this will continue as the economy improves. According to Mike Hardwick, President and CEO of Churchill Mortgage, “tapping into that groundswell of community pride and spirit of togetherness can be a powerful force ….”
Knowing that America was built on small businesses, this is encouraging news. The more small businesses thrive, the more people can get back to work. With unemployment falling below 6% for the first time since a high of almost 15% in April 2020, Mike feels confident stating “there’s good reason to believe the current labor shortage woes will be short lived.” As more people can get back to work, the more opportunity they will potentially have to make different financial choices. This can give many the chance to save for a down payment, helping them build wealth by owning a home and gaining equity rather than renting.
As the economy moves positively forward, new opportunities are being created. While many small businesses pulled through after 2020, not all made it. “Some businesses also went belly-up over the past year, leaving voids that are waiting to be filled by savvy entrepreneurs who understand market forces and can capitalize on opportunity,” says Hardwick. Looking at the openings in the business arena and using innovative and creative thinking along with strategic planning can help someone whose job didn’t come back to succeed as an entrepreneur.
“Although I would caution against incorporating debt into a business plan and think utilizing investors and personal savings is more reliable, Small Business Administration (SBA) 504 loan program rates are as competitive as ever in recent years.” In fact, only 66% of jobs have been recovered thus far, leaving room for those looking to branch out into a new job or thinking of opening a new business.
This optimism toward new opportunity falls into the real estate category as well. With so many different home loan options allowing for smaller down payments and working with people who have a low or no credit score, it just makes sense to try to buy a home!
Interest Rates Are Holding Steady
If you’re looking to purchase or refinance a home, there’s never been a better time. You may have heard it’s a seller’s market and too competitive to buy the house you want. While it’s true there is competition, but homeownership is still very much possible. Historically low interest rates have given homeowners the opportunity to lower their current interest rate, while allowing new home buyers to secure mortgages they may not have been able to otherwise.
We quoted Hardwick above regarding about small business loan rates, and the advice easily applies to the real estate market. He also states, “I don’t think it’s likely rates will get any lower, but they could go up in the coming months. Don’t sit on the sidelines if this is something you’d like to consider….” We encourage you to reach out to a Home Loan Specialist and see what your options are if you’re ready to invest in a home.
The world is a different place than it was two years ago, but here at Churchill we live by the same principals we always have. We put people over profits and lead with the heart of a teacher. That means you will always feel supported and educated to make the decision that’s right for you. If you’re navigating the home buying process and looking for new opportunity, reach out. We’re here to help.