Interest Rates LESS THAN 3% - Great News for Re-Fi, Sellers and Buyers3/3/2020
Interest rates have never been this low and everyone can benefit from this.
I just received the following update from Janelle Roberts who is a trusted lender that I work with. I wanted to share this with you immediately so you can understand what the market and rates are doing. Refinancing will be something everyone with a loan should consider. If you are selling, buyers can afford more and have a great incentive. If you are looking to buy, there is no better time. Our market over the last month has been on fire. We have record low inventory and need more homes for buyers.
Your trusted Real Estate advisor… Cliff
Trying to predict what interest rates will do, of course, is like predicting the weather. The best that the average person can do is speculate. Experts are educated, understand historical patterns, have access to data and thoroughly study that data on a continuous basis. They make informed guesses based on all of those factors, but at the end of the day, an unforeseen event like the Covid-19 (coronavirus) can completely change the trajectory of interest rates and render an expert opinion moot. No one saw this virus coming. Governments and banks around the world responded to the coronavirus crisis by lowering interest rates, in an effort to stave off a potential economic crash. Markets were already pricing in a coronavirus recession as supply chains are being disrupted and public gatherings are being canceled, which can filter through to spending and investment. But, let's take a second to remember, the shock isn't comparable to the financial crisis in 2008. Back then, panic in the credit system cut off lending, causing the global economy's gears to stop turning. The past few days were different. In the U.S., an overheated stock market (shares were at a record high last week) started coming to terms with the possibility of slower economic growth. Risks are still lurking, but banks have been fortified. The Dow dropped nearly 800 points after the Fed announcement. Investors, in turn, loaded up on U.S. Treasurys, pushing the benchmark 10-year yield below 1% for the first time ever. So what all this means is that rates are low!!! We are floating around 2.75% for VA & FHA, and just over 3% for Conventional. I have never seen rates this low in my career, and I have to say if there is a silver lining at all to this coronavirus, this might be it. Our company is offering free float-down on rate locks to our clients as long as the rate has dropped more than .125% from what they are locked at (no charge to the client). Please let us know if we can answer any questions for you guys, or update any open house flyers with the lower rates.
Augusta Financial, Inc.