Coronavirus and Mortgage Rates

The coronavirus, stock market turmoil, and mortgage rates are all topics of discussion circulating our local and world news. As coronavirus fears hit financial markets, U.S. bond yields are tanking, pushing mortgage rates that loosely follow the 10-year Treasury yield toward an eight-year low. Rates today with strong financials and credit scores are between 3.25% and 3.5% for a 30 year fixed mortgage. With rates getting pushed lower, mortgages are also becoming less valuable to investors if they get paid off too quickly. Those payoffs, or refinances, are surging right now as applications to refinance a home loan are up around 165% annually, according to the Mortgage Bankers Association. New mortgage applications have not been as strong due to the severe shortage of homes. U.S sales of previously owned homes last month fell 1.3% from December, but January sales were up a stunning 9.6% versus a year ago. In short, we are still suffering from a lack of inventory in many markets as strong buyers patiently wait on the sideline for their ideal home.

Purchasing a new home continues to be one of the most stressful financial transactions most people ever make, causing about a third of buyers to lose sleep. In a new study by Flyhomes, about 15% of respondents said they were reduced to tears during the process while 20% got in a fight with their spouse or partner because of stress. Buying or selling a home is a very emotional time in one's life and requires a trusted advisor to guide you through the process. Allow me the opportunity to sit down with you to earn your trust and/or those you refer to me to handle this large financial commitment.