The World Health Organization has confirmed nearly 47,000 cases of coronavirus disease 2019 (COVID-19) and nearly 1,400 resulting deaths, and financial markets are reacting with fear.
US Treasuries have dropped, and mortgage rates, which generally follow US Treasuries, have dropped to a low not seen in somewhere between three and eight years, depending on the way the numbers are calculated.
According to an article by CNBC updated on Tuesday, the average rate for a 30-year mortgage is 3.34% for borrowers with strong financials, a number that will likely drop even further as early as today. The Motley Fool, two days ago, noted that the rate had reached 3.33% on a 30-year loan and as low as 3.08% for a 15-year fixed mortgage, and predicted that the Federal Reserve may very well lower rates, which could lead to a further reduction in home loan rates.
Yesterday, the Washington Post found loans at 3.45% and cited experts who generally predicted even lower rates going forward, though one, Michael Becker, said that conditions today may prevent the rates dropping to an all-time low. In an article today, the New York Times quotes a local Federal Reserve Bank president in saying that the Federal Reserve (the “Fed”) is prepared to cut rates in response to a global pandemic.
The Seattle market remains active, and such low loan rates may further stimulate home-buying.
If you are interested to learn more about how mortgage rates could affect your situation, give us a call. Regardless, please be safe.