Mortgage rates have usually plummeted whenever the economy tanked. However, due to the COVID-19 pandemic that spread worldwide, the mortgage rates have been more volatile than ever. Due to this, it is difficult to predict if it is a good time to purchase a new house or refinance your loan. The Federal Reserve has cut the interest rates to almost zero in an attempt to stimulate the economy. But as mortgage rates are not directly related to Federal directives, a trickle-down effect is currently observed.
Advice from Pros Related to Mortgage Rate Volatility
Things are changing rapidly in the housing market and rates have been high for almost a year. As everyone is dealing with the volatility in the market, the Fed is working on putting lenders at ease by setting mortgage rates. Owing to an unstable market climate, the best course of action as recommended by the pros is to talk to a professional mortgage expert like the ones at Rex Homes who have additional information for you to better understand your refinancing or purchase options. Market experts are suggesting to contact a loan originator and understand if the rate makes sense, what is required to lock your rate, and work on closing the loan in the specified time period.
Should You Buy A Home Right Now?
Unfortunately, many people have lost their jobs due to the impact that COVID-19 had on the economy. Purchasing a home should be a personal decision depending on your current economic situation. If you have been lucky enough to have a stable job, this uncertain economy may pose an excellent opportunity for you to buy a new house. As housing prices are generally affordable and have not increased since their peak in 2006, this is a good time to obtain a low-interest mortgage if you have good financial standing to buy a home. You can contact a mortgage professional who will assist you in navigating through the home buying process, help you understand your options, and even secure low long-term mortgage rates in this rough climate.
Should you Refinance?
In an attempt to stabilize the housing market, the Fed has pledged to purchase large sums of government-backed debts. It is believed that this action should help homeowners. Experts at mortgage companies are suggesting homeowners to look into refinancing as an option to lock down lower rates and save thousands on their mortgage. However, it is important to note that the rates are fluctuating more than ever and you may lose out on a good rate if you wait too long as there is no guarantee that the rates will continue to go down.
Another challenge that is currently seen with refinancing is that since there is a stay-at-home order and social distancing norms are in place, it is not easy to meet a broker in person to discuss your refinancing options. You can overcome this challenge by hiring an expert mortgage professional who has all the necessary resources to conduct operations online and can virtually help you by evaluating your current mortgage and inform you on how much you can save.