Will Mortgage Rates Remain Low Amid COVID-19?
With quarantines, school closures, and calls for increased social distancing across the country, we cannot seem to catch a break this week. For homeowners looking to refinance, at least mortgage rates are low. But will they stay there? Just last week, some homeowners rushed to refinance only to find the 30-year, fixed-rate mortgage jump unexpectedly, as experts forecasted rates to continue to drop, not rise, amid growing concerns surrounding the coronavirus. Still, economists say that those looking to lock in low rates will not suddenly wake up to sky-high rates. Though they may bounce around the current levels, the rates will remain low for the time being.
“Will mortgage rates remain low?”
Probably, for the time being.
It’s a question many homeowners, and potential home buyers, are asking. But with uncertainty rampant, thanks to turbulent financial markets and the spreading coronavirus, it’s hard to say for sure just how long they’ll stay rock bottom.
Last week, for instance, the average rate on a 30-year, fixed-rate mortgage ticked up slightly to 3.36 percent from a record low — despite financial indicators that suggested it would fall.
What gives?