The coronavirus pandemic has caused massive volatility in the financial and mortgage markets. In the past few weeks, there have been dramatic shifts in interest rates that are rarely seen. Currently, mortgage lenders are a full percentage point apart from one another in their rate quotes even when quoting on the same loan type.
With the current state of the economy, we will continue to see inconsistencies between lenders and changes in mortgage rates multiple times a day. In addition, there are major changes in credit requirements from a borrower due to a constricting credit market. This new environment will continue to impact mortgage rates in the upcoming weeks. If the coronavirus outbreak is contained soon, investor confidence will regain within the marketplace and interest rates will adjust more favorably to reflect optimism. If the problem continues to get worse, the financial markets will follow closely behind.
A key indicator that we will be a low rate environment is the fact that the Federal Reserve cut the Federal Funds rate down to zero. While the Federal Funds rate does not directly impact mortgage rates, we do expect mortgage rates to stay low.
We understand that the coronavirus has caused the world and individuals to make many life adjustments. Hopefully, while you’re home staying healthy you will be able to take the time to check up on your finances. Although this is a frightening time for many, it may be the perfect time to explore refinancing your existing mortgage loan.
If you have questions or concerns regarding the financial market give us a call to speak to a Bluefire Mortgage Group Loan Consultant at (760) 930-0569.