This year has been the year for new lows as mortgage interest rates hit new lows for the 10th time. I told a client earlier this year that I didn’t think rates would go below 3%. I am happy to be wrong.
Speaking of records, 2020 has been breaking a lot of long-standing records. Did you know that we hit an all-time high in unemployment in 2020? 14.70 percent in April of 2020.
Basically, it boils down to many homeowners not wanting to sell if it means losing their super-low mortgage rates. As one Beacon Hill condo owner stated: “No way will I give up my 3.25% mortgage, without some very compelling reasons.”
The phenomenon, called “lock-in,” is quite serious, according to a recent study by DePaul University’s Institute for Housing Studies.
So let’s get this straight: A monetary policy of low interest rates designed, in part, to spur housing and economic activity is actually causing slower housing and economic activity.
Makes sense to us!
File under: Damned if you do, damned if you don’t
Back to Boston condos for sale homepage
Contact me to find out more about this property or to set up an appointment to see it.
SEARCH FOR CONDOS FOR SALE AND RENTALS
- Back Bay
- Beacon Hill
- Charlestown Navy Yard
- Dorchester Heights
- Jamaica Plain
- Leather District
- Seaport District
- South Boston
- South End
For more information please contact one of our on-call agents at 617-595-3712.