Will the Coronavirus Affect the Housing Market?

Investor fears due to the coronavirus have pushed the stock market way down after a particularly prosperous 2019. Now, the home building industry is bracing to find out how the outbreak will affect home sales—if at all. Some experts worry that coronavirus fears will lead to buyers being cautious with their money, which could potentially be a big hit to the luxury industry. On the other hand, mortgage rates fell again, meaning this could actually stimulate buying as people try to lock in the low rates. With such varying outcomes, even the experts are having difficulties predicting what will happen next. 

Everyone, it seems, is finally coming to grips with the threat posed by the rapidly spreading coronavirus. The stock market drops reflect investor panic over the possible effects on the global economy, and are causing regular folks to worry about their retirement funds. And would-be home buyers and home sellers? Well, they're buckling in for a bumpy ride with plenty of blind corners.

The World Health Organization warned—again—on Friday that the virus that causes COVID-19 could soon reach most, if not all, countries around the world.

So what will be the impact of this mounting crisis on the American real estate markets?

Already, mortgage interest rates have fallen as investors take their money out of the stock market and put the cash into safer U.S. Treasury bonds. When bonds are strong, mortgage rates typically go down.

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