The Federal Reserve cut its rates three times last year, which resulted in low mortgage rates that have stayed low in 2020. Those cuts are thought to be why new home sales were up across the country in 2019, which is a great economic indicator!
Interestingly, rates have plummeted further this week, with some sources declaring that they are at historic lows. The reason for this sudden drop is panic about the Wuhan coronavirus. The uncertainty that the potential pandemic has created, particularly with those who typically invest in Asian companies, has led to a flood of investments in the USA, which is considered to be the world’s most stable market. Much of that money is going to the U.S. Treasury and is therefore driving rates down. How long this downward trend will continue is anyone’s guess: the virus could be cured and the markets returned to normal quickly, or continued uncertainty could keep rates where they are or lower them even further.
While I hate to suggest that anyone capitalize on coronavirus, if you are in the market to buy a home or to refinance the one that you already own, then now is the time to do so. Your new mortgage rate could be as low as 3.1%! I do not believe that this low of a rate is sustainable, but it sure is a boon to the real estate market right now!