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Last updated on February 3rd, 2021 at 10:49 am
With the onset of Coronavirus pandemic so many businesses have closed, millions are unemployed and there is a severe economic lull.
Yet miraculously the real estate market made amazing business thanks to the record low mortgage interest rates.
A new study revealed that more than half of those who took out a mortgage during the pandemic regret it.
A quarter of homeowners have refinanced and about half have entered forbearance agreements.
According to data from Mortgage Bankers Association – Mortgage refinances are up 84% year-over-year, while mortgage applications have increased 22% compared to the year 2019.
Mike Brown data journalist from LendEDU reported, “Among many interesting trends, we found that new homeowners are regretting their decision to buy a house during the pandemic, while 26% have refinanced their mortgage during the pandemic, and 54% have seen incorrect negative credit marks for something like a missed payment despite agreeing to temporary forbearance.”
LendEDU charted and broke down respondents’ answers to questions and found this response –
94% of our respondents became homeowners with the help of a mortgage before March 2020 when the coronavirus pandemic began impacting the U.S. while 6% became homeowners with the help of a mortgage during the pandemic.
Amongst the latter, a combined 72% cited the coronavirus pandemic as the reason they decided to take out a mortgage to become homeowners, with many specifically attributing the current low-interest-rate lending environment.”
Reference Source: DSnews
