What Is Happening With Mortgage Rates in the Current Climate?
/We have another post for our mortgage guru extraordinaire Dan Hubrich. Before I post his update on the current market situation, I want to update you on some changes he’s recently made. Dan is no longer working with Castle and Cooke Mortgage. He is not the Principal Lending Manager of Mountain View Mortgage. This changes gives him the ability to better serve his clients with the absolute best rates every day.
Today Dan is talking about the current climate in our county/world and what that means for mortgages.
What in the world is happening in the financial markets right now? It’s no surprise that everyone is talking about the coronavirus. They say markets are moved by 2 forces…fear and greed. Right now they are clearly being moved by fear. This is not fun for any of us but the silver lining here is that when there is extreme fear in the markets, the Fed usually steps in to calm everyone down by lowering rates among other things. They made an emergency ½ point rate cut last week and we expect further Fed guidance going forward as this news develops.
Mortgage rates followed suit initially and we saw record low rates last week. With the extreme volatility in the markets, rates have popped back up a bit this week but they are still very low historically speaking. Long story short…if you’re in the market for a home right now, there’s never been a better time to buy since you will get a much better bang for the buck now. Someone who qualified for a $300,000 home on January 1st this year, would have qualified for a $340,000 home last week! As you can see, these low rates make a big difference in your buying potential. Reach out to me for more information and for real time market updates anytime.