Yesterday Leslie talked about how the Fed dropped interest rates 0.5%… twice the normal drop… in response to the Coronavirus. Mortgage interest rates are at or near all-time lows… great news for buyers, or homeowners ready to refinance! Below is more info on the impact of the Coronavirus from my blog at Keeping Current Matters.
The Coronavirus (COVID-19) has caused massive global uncertainty, including a U.S. stock market correction no one could have seen coming. While much of the news has been about the effect on various markets, let’s also acknowledge the true impact it continues to have on lives and families around the world.
With all this uncertainty, how do you make powerful and confident decisions in regard to your real estate plans?
The National Association of Realtors (NAR) anticipates:
“At the very least, the coronavirus could cause some people to put home sales on hold.”
While this is an understandable approach, it is important to balance that with how it may end up costing you in the long run. If you’re considering buying or selling a home, it is key to educate yourself so that you can take thoughtful and intentional next steps for your future.
For example, when there’s fear in the world, we see lower mortgage interest rates as investors flee stocks for the safety of U.S. bonds. This connection should be considered when making real estate decisions.
According to the National Association of Home Builders (NAHB):
“The Fed’s action was expected but perhaps not to this degree and timing. And the policy change was consistent with recent declines for interest rates in the bond market. These declines should push mortgage interest rates closer to a low 3% average for the 30-year fixed rate mortgage.”
This is exactly what we’re experiencing right now as mortgage interest rates hover at the lowest levels in the history of the housing market.
Bottom Line
The full impact of the Coronavirus is not yet known, but the drop in mortgage interest rates means you can buy more home for the same monthly payments. When you are out searching, the same preventative measures recommended to prevent influenza are also effective in reducing the risk of contracting or spreading coronavirus. These measures include:
- Staying home if you have a fever, cough, shortness of breath or any other cold or flu-like symptom.
- Washing your hands frequently with soap and water for at least 20 seconds. If soap and water aren’t available, use an alcohol-based hand sanitizer.
- Avoiding touching your eyes, nose, and mouth with unwashed hands.
- Avoiding close contact with anyone who is sick.
- Cleaning and disinfecting frequently touched objects and surfaces.
- Covering your mouth and nose with a tissue when you cough or sneeze, or cough or sneeze into your sleeve.
