While government funds sent to taxpayers in the last year was meant to be spent on shopping, dining out and to reinvigorate the travel industry, some recipients of these funds are finding other ways to stimulate the economy, including by purchasing real estate.
According to a recent survey conducted by Redfin, nearly one in every four first-time homebuyers are using stimulus money for their down payment. The survey found that after personal savings, stimulus money is the second-most common way homebuyers have covered their down payments.
The coronavirus relief funds resulted in the average American family with children receiving $6,600 in stimulus money. Despite many using these funds towards the purchase of a home, others have had to put stimulus money toward everyday essentials as layoffs at the outset of the pandemic caused financial hardship.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 2.875 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (877) 700-0942 and your questions may be featured in an upcoming article.
