How COVID-19 is Affecting Mortgage Rates

Financing

In a recent article by U.S. News & World Report, the coronavirus is actually sending mortgage rates into historical lows, which means it might be the perfect time to buy or refinance if you've been holding off. This spread has led to economic uncertainty and because of so much validity in the stock market and travel, other areas such as mortgage and refinancing have taken a huge jump. Recent economic validity has driven down mortgage interest rates which can actually boost homebuying activity… Great news for homeowners and homebuyers alike.

Think of it this way, you don't actually have to speak to another person face-to-face to refinance or buy a home. We recently helped folks with a refinance and everything was done online, over the phone, and even signatures were done online. The final closing was in person but it can be at your own house as we have careers and notaries they can come to you or we can meet in a sterile environment. With so many precautions and safety measures in place, it makes taking advantage of these low rates a no-brainer.

On March 4, the average 30-year fixed FHA mortgage was at 3.29%. This is a record low for the last 50 years and down more than one percentage point from the same time last year. That decreased even more on March 12 down to 2.75% on FHA. Mortgage rates are determined independently of the federal government's target rate but the emergency rate cut of half a percentage point can influence the leading industries offered rates making it a great time for homebuyers and refinance applicants.

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Should you refinance?

If you can refinance down at least one full percentage point it definitely makes it worth it. You need to factor in closing costs and the value of your home currently, but with home values actually going up and if you have not refinanced in several years, checking into your current rates may save you a lot of money in the long run. You don't just have to pull money out either. You can refinance your terms. Perhaps you started as a 30-year term and now you want to go down to a 15-year term. This is a great way to shave tens of thousands of dollars off of your mortgage over time.

If you've been waiting to apply for a mortgage or looking to be a first-time homebuyer, now is a great time to lock in a low-interest rate. Whether you want to wait till spring or cash in on the good rates now, we feel that this will not have a negative effect on the housing market. Because real estate and the housing market and the mortgage industry is not a large gathering event, people can work one on one over the phone or online to get the job done.

Related: need to buy a house but nervous about the coronavirus?

Give us a call today to find out what your current rate could be and what your home might be worth. Who knows!? This may be the perfect time to cash in and save thousands of dollars.

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