While this article may not age well (rates are constantly shifting), I wanted to keep you all updated on the current rate market following Coronavirus headlines. Best-execution rates – essentially the best rates you can secure with great credit – are around these levels:

• 3.25% APR (0 pts) – 30 Year Fixed

*You can also buy down your rate to go as low as 2.99% APR

• 3.00% APR (0 pts) – 15 Year Fixed

*You can also buy down your rate to go as low as 2.625% APR

Your mileage may vary when it comes to a specific loan scenario, but the bottom line is that rates have moved beyond 3-year lows – they’re at 8-year lows, nearing all-time lows…

How does Coronavirus lower rates?

As discussed in our past article about U.S./Iran tensions, bad news on a global scale actually has a positive effect on mortgage rates. Investors feel more scared to invest in riskier bonds, so they pour money into the U.S. 10-Year Treasury; this yield directly correlates with mortgage rate movement. With Iran, it was the threat of war that lowered rates. That threat seemed to dissipate in subsequent weeks. With Coronavirus, it’s the insecurity caused by a really dangerous virus on a global scale.

Word is that the initial virus wasn’t deemed very dangerous, but now the spread has intensified and no cure is yet available. It has begun influencing immigration in multiple countries, and business has of course been affected. It’s not “business as usual” when it comes to mortgage rates either, especially in the case of viruses. Rates saw a similar dip after the SARS outbreak in the early 2000s.

How long will rates stay low?

The question of how long rates will stay this low is not easy to answer. It depends entirely on not just the state of Coronavirus, but on the way that headlines depict the outbreak to the world. The psychological effect on market traders might get more severe – leading to lower rates – but it’s always more likely that news will fizzle out and rates will return to older levels. People have short memories, and markets seem to as well.

Should you take action on these rates?

Though I may sound like a broken record, it’s always a good idea to discuss your options with a loan officer. I’ll imbed our quote generator into this article too – http://prospect-quote.com – that way you can get easy, customized rates any time.

“3-year lows” was already compelling, but with them moving even lower, it’s hard to recommend holding back! Get quotes now. You don’t want to wait around for news to adjust further, sliding 15 and 30-year rates back to previous levels and missing your chance.

Give us a call at 858-605-0952. We look forward to assisting you however we can!

Jason Vondrak
Ceo
Prospect Financial Group
948 Garnet Avenue
San Diego, CA 92109
NMLS: 349089 | BRE: 01837707

Jason Vondrak has been in the mortgage industry since 2004 and co-founded the mortgage brokerage Prospect Financial Group in 2006 in San Diego, California. Today he serves as President and CEO of Prospect Financial Group and the president and founder of Prospect Property Group, a real estate development company, established in 2012.

“I’ve had the privilege to serve in an industry that exists to ensure homeownership remains among the top priorities of government and citizens alike. Over the years, it has been a pleasure working alongside homeowners, real estate professionals, and business associates combining efforts and teaming up to help homeowners realize the dream of home ownership.”