March 20th, 2020
The issues surrounding the Coronavirus (COVID-19) epidemic have impacted the entire world. This includes the stock market right here at home. The stock market has plummeted and so, too, have mortgage rates. While the Coronavirus (COVID-19) gives everyone cause for concern, real estate agents are saying that now is the right time to buy a house.
The Best Mortgage Rates In Years
Checking the stock market today will reveal a lot of red arrows. The Dow Jones Industrial Average even had one of its worst single-day drops ever. While this will cause people to check their portfolios with some trepidation, the reality is that a sinking stock market means that mortgage rates start to drop.
An Emergency Rate Cut At The Federal Reserve
In response to the free-falling stock markets, the Federal Reserve issued an emergency rate cut. This is a move that is taken to try to stabilize the stock market and prevent a fire sale. When the Federal Reserve issues a rate cut, this means that the rate at which other banks can borrow money from the Federal Reserve is lower. As a result, the banks pass these savings on to their clients.
This means that interest rates on mortgages will be lower. Right now, people may be able to find a mortgage with an interest rate of around three percent. These rates are rivaling some of the record lows that were seen in years past.
A Good Time To Put A House On The Market
Therefore, anyone who is looking to move should know that now is the right time to buy a house; however, this is also a great time to sell a house as well. Any house that is going on the market is likely to receive multiple offers at the right price. This is because so many people will be looking to buy houses given the low mortgage rates. With multiple offers, people might be able to sell their homes at a higher price.
While the Coronavirus (COVID-19) has given everyone cause for concern, it has sent mortgage rates tumbling. This means that it is a great time for anyone looking to buy or sell a house. It will be interesting to see how the market responds in the coming weeks.
If you are in the market for a new home or interested in refinancing your current property, be sure to contact your trusted home mortgage professional.