If you were a homebuyer or seeking to refinance your home during this current health crisis, you’re not alone in having questions right now. With uncertainty about future income, and a plunging financial market because of the coronavirus pandemic many have put their real estate plans on hold until a path forward can be figured out.
The first significant step taken was taken by the Federal Reserve cutting its target interest rate to near zero percent. Bear in mind that this is the second emergency rate cut in a two-week period, which lowers the federal funds rate to between 0% and 0.25%. This is in an effort to stimulate the economy by making it cheaper for people to borrow money for a mortgage or other things. This acknowledges the fact the Fed recognizes the economic impact of the coronavirus outbreak being on par with that of the global financial crisis of 2008.
What exactly does that mean for borrowers who want to refinance or get a mortgage?
Mortgage rates are now at historic lows and there is increasing demand to take advantage of these rates. But do not expect the mortgage interest rates to fall to zero.
While we remain in a period of uncertainty for the moment, current economic conditions point to mortgage rates remaining low for 2020.
As in stable economic times, each consumer must assess his or her own unique financial status when considering refinancing a mortgage. This may be a prime opportunity for those who are looking for a favorable lower rate of interest on a refinanced mortgage loan. So if you feel the need to not miss out during this housing market, contact MortgageDepot.com today to discuss your options. We are here to answer your questions and to guide you through the mortgage process during these uncertain times.