
Mortgage Rates Hit All-Time Low Amid Coronavirus Fears

There is now a plunge in the United States mortgage rates due to the rising economic impact caused by the coronavirus outbreak. With this, Americans are applying for new mortgages as they take advantage of the cheaper interest rates.

The coronavirus outbreak has also affected the global economy
Global investors are starting to worry about China, urging them to secure safe-haven assets, the US Treasury Bonds for instance. According to Freddie Mac, as of March 5, the average 30-year mortgage hit an all-time low record of 3.29 percent, making it the lowest level since September. Also, the 15-year fixed-rate mortgage fell to 2.79 percent, while the 5/1 adjustable-rate mortgage fell to 3.18 percent.
A survey conducted by the Mortgage Bankers Association revealed that the Market Composite Index, a measure of the volume of the mortgage loan application, grew 15.1 percent on a seasonally adjusted basis last week. The Index rose to 29 percent compared from a week earlier on an unadjusted basis. Refinancing application spiked 26 percent from last week, making it 224 percent higher compared last year.

Mortgage rates are now hitting an all-time low
China and the Mortgage Market
Coronavirus is fueling market turmoil. The current situation goes to show that economic uncertainty in one part of the globe can spread rapidly and eventually affect consumers and investors.
The Chinese government continues to struggle to stop the rapid spread of the virus which started in Wuhan, China. Presently, fears stemming from the coronavirus outbreak has caused the plunge on China’s stock market. The U.S. market has also become more unstable as Dow plummeted 2,000 points recently. The global insecurity has prompted investors to secure U.S. Treasury bonds, which is a safer kind of investment compared to stocks.
Furthermore, government bond yields have also obtained a steep decline. The benchmark 10-year Treasury yield briefly reached an all-time low of 0.318 percent in overnight trading. The 10-year yield is essential in the U.S. economy as it benchmarks mortgage rates.

Fears surrounding the outbreak has also caused the Chinese stock market to plunge.
As aftermath, a 30-year fixed mortgage’s average interest rate also slipped to .51 percent to 3.72 percent last month. The difference may not seem as much, but it makes a huge difference for long-term borrowers.
Zillow economist Matthew Speakman said that the impact of coronavirus on human life and the economy continues to be unknown. Now that the coronavirus exists, it will remain to be the main driver of the movement of mortgage rates in the upcoming weeks.
The rise of the number of people applying for a mortgage loan may be a positive sign, but economists say that there is one problem. Recently, the inventory of homes up for sale has decreased as demands from buyers increased.
The low inventory is caused by lower construction activity following the recession, slowing the pace of household building in the U.S. Several investors also purchased homes that were eventually converted into rentals.
More in Investments & Savings
-
`
What’s Adele’s Alleged Sirtfood Diet that Hollywood is Buzzing About?
The Sirtfood diet plan includes dark chocolate and red wine and, but with intense limitations. Adele, the Grammy-winning songstress, celebrated her...
January 15, 2021 -
`
Thoughtful Holiday Messages from the Royals Needed in 2021
The year 2020 was very challenging and much has changed for families, who lost much and had to cope more times...
January 14, 2021 -
`
Let The Property Brothers Give You the Best House-Buying Tips Ever
HGTV’s infotainment reality show The Property Brothers, which is hosted by twins Jonathan and Drew Scott, offer expertise on buying new houses,...
January 13, 2021 -
`
Kim Kardashian Fans Reveal the One Inspiring Quality that Made Them Admire Her Despite Her Past
Kim Kardashian has earned her fair share of haters and critics over the years. Fortunately, they’re balanced out by the many...
January 12, 2021 -
`
Outrageously Expensive and ‘Extra’ Gifts Celebs Have Given Their Kids
Kids rarely remember the mountain of gifts introducing them to Santa, or when we tried to get them to blow out...
January 11, 2021 -
`
Chrissy Teigen Talks about How She Teaches Her Kids to ‘Give Back’
Chrissy Teigen is very active on social media, which makes her an easy target for detractors, especially the ones who question her parenting...
January 8, 2021 -
`
Super-Rich People Spend Money In Ways That Us Plebs Cannot Comprehend – II
The super-rich and their silly spends, never fail to amaze us: Submarine sports car to avoid traffic cops underwater If bored...
January 7, 2021 -
`
Six Tell-Tale Signs that You’re Spending More Money than You Can Afford
The secret to growing wealth over time is living below your means. This simply means that you need your spending to...
January 6, 2021 -
`
These Historical Tours Broke All Records and Made Millions
The lives of musicians today are vastly different from before, due to the proliferation of streaming platforms and social media access....
January 5, 2021
You must be logged in to post a comment Login