Record Low Rates, Lucky Buyers!
Mortgage interest rates are sharply lower, driven by the record low of 10-year U.S. Treasury yields, down to 0.54% as of Monday March 9. Fear of coronavirus, the Fed’s 50 basis point drop, and OPEC’s oil price war have been driving sizable stock selloffs around the world, and investors are fleeing to alternative asset classes, such as bonds, gold and real estate, that some consider to be safer. Nationwide, 30-year fixed jumbo mortgage interest rate decreased to 3.64% on March 4, from 3.69% the week before, according to Mortgage Bankers Association. There’s even speculation from CME Group of a further Fed rate cut this year, despite earlier assurances from Fed of its desire to keep the rate steady.
While the outlook is murky, it does seem that mortgage rates may be falling to even more new lows for reasons not caused by the housing market. While we see some homebuyers putting their searches on hold, others are eager to take advantage of the falling interest rates. So far, economic data, such as jobs report, suggest the general economy is still stronger than ever. It is an unexpected fortunate opportunity for the right homebuyers!