Literally anyone who has received a mortgage in the past 50 years can find a better rate now!
Current mortgage rates, as you may have heard, are dropping as a direct result of the worries about the Corona-Virus pandemic.
The fact that it’s spreading makes it worse for people but better for borrowers.
The major player in the drop in mortgage rates would be the Federal Reserve. To combat the drop in the stock market, they’ve dropped the treasury yields. This is the best news anyone with a mortgage could hope for in our current time, as both the dropping of treasury yields and the plummeting of the stock market are linked to lower mortgage rates.
Last Tuesday, the FED cut rates by .5% as an emergency response to the effect the Corona-Virus was having on the stock market and mortgage rates.
Running some numbers, the 30-year mortgage shrunk from 4.41% last year to 3.29% now. The 15-year rates dropped 16 points to 2.79%, and the 5-year rate dropped to 3.18%, an entire 69 points from last year.
All in all, it’s important for almost everyone involved in the housing market to pay attention to current mortgage rates, as it’s true that the markets are hopeful for another rate cut later in the month, so it’s best to keep your eye on the rates for another few weeks.
As a result, it’s going to be much, much harder to predict the perfect time to refinance a mortgage. However right now almost anyone can save money on his or her mortgage. With just a quick refinance, and good credit score, you can, too.
As the Corona-Virus pandemic ends and the economy recovers most economists believe the stock market will rise again, along with treasury yields, and therefore mortgage rates.
