Mortgage rates slide to a record low for the 15th time this year due to disappointing economic data and stimulus plan in Capital Hill. The sudden influx of new COVID-19 cases added the pressures on pushing the rates even lower and ignored the incoming vaccine. The Fed has taken the vow to keep short-term interest rates at near-zero levels until the economy returns to full-employment and when inflation reaches 2% again; which, in this case, means to around 2024. In relation to mortgage rates, it’s not much of an effect. The current rates means that any changes that should lower them even further have a much diluted consequence, with the predicted difference being around a drop of 15 basis points. For a $200,000 mortgage, that equates the savings of around $15 a month.
This miniscule amount of change can be attributed to inside conflict over when the vaccine will become widely accessible and it’s projected effect on the employment scene. If unemployment rates drop after the vaccine is distributed, the low mortgage rates can be easily taken advantage of by prospective homeowners. This is still a very good time to refinance or purchase a new home. Contact me today to find out how much you can save.
