COVID-19, better known as the coronavirus, has had a noticeable impact on many aspects of global economics. Notably, the concern over the virus has impacted mortgage rates, bringing them to their lowest point since October 2016.
As of February 27, 2020, the 30-year fixed-rate mortgage (“FRM”) decreased .04% from 3.49% to 3.45%. To put this in perspective, the lowest the 30-year FRM has ever been was 3.31% in November 2012. Similarly, the 15-year FRM decreased .04% from 2.99% to 2.95%, while the 5/1 adjustable-rate mortgage (“ARM”) decreased .05% from 3.25% to 3.2%.
While nobody should be rooting for this virus to continue impacting the global marketplace, the fact of the matter is that the virus directly impacts how low the mortgage rates are likely to go. Conversely, as the virus is contained, rates will likely increase to their previous points; those points are still near record low.
These low rates have had a noticeable impact on the housing market. In the week of February 21, 2020, refinance applications were double what they were the same time last year. The bottom line? It’s a good time to buy or refinance.
At the Chernov team we understand that knowledge is power and knowledge of how the market is behaving is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.