Natalie Campisi: Mortgage rates are expected to fall further as coronavirus concerns grow
AP

Natalie Campisi: Mortgage rates are expected to fall further as coronavirus concerns grow

  • 0

The deadly coronavirus outbreak in China that has spread to other countries is starting to have an impact on mortgage rates, with U.S. Treasuries falling to their lowest levels since October.

Investors are retreating to safe-haven asset classes amid an uptick in reported cases around the world, which could send mortgage rates even lower than the current rate of 3.77 percent, according to Bankrate's national survey of mortgage lenders.

The 10-year Treasury yield, which is closely tied to mortgage rates, fell 7 basis points Monday to 1.61 percent, according to Bloomberg. Stocks retreated as well, with the Dow Jones Industrial Average plunging more than 400 points Monday morning.

Although the World Health Organization did not sound the alarm by naming the virus a public health emergency last week, investors are still on edge.

"Nervous markets are often good news for mortgage rates, and the current nervousness about coronavirus is no exception," says Greg McBride, CFA, Bankrate chief financial analyst. "Market concerns about the possible economic impact of the virus are driving bond yields and mortgage rates lower."

Homebuyers and refinancers, currently enjoying historically low rates, will likely see even lower rates in the coming weeks. Black Knight data shows that the mortgages of some 7.8 million Americans, with the current 3.77 percent average interest rate for a 30-year fixed-rate mortgage, according to Bankrate's national survey of mortgage lenders, are refinance eligible.

"A good refinancing opportunity is now even better. But there's no telling how long this persists. Sentiment-driven moves are very susceptible to what is in the headlines," McBride says.

WHAT BORROWERS SHOULD DO

If you're currently shopping for a mortgage, experts warn against trying to time the market. Although signs point to lower mortgage rates, tides could turn, so there's no guarantee that you'll get a better deal tomorrow than what you can lock in today.

One of the best ways to secure the cheapest loan possible is to shop around for lenders with competitive rates.

Keep in mind, your credit profile also has a major impact on the interest rate you'll qualify for, so make sure your FICO score and debt-to-income ratio are optimal to secure the lowest rate.

___

Visit Bankrate online at http://www.bankrate.com.

0
0
0
0
0

Be the first to know

* I understand and agree that registration on or use of this site constitutes agreement to its user agreement and privacy policy.

Related to this story

Most Popular

Tuesday: "Going into Business Seminar," 1 p.m., Albany Area Chamber of Commerce, 435 W. First Ave. Free registration: 541-917-4929.

U.S. stock investors reached a milestone last year. For the first time, money invested in stock index funds and exchange-traded funds (ETFs) exceeded the amount in actively managed U.S. stock funds, according to Morningstar Direct. That's a sign that individual investors are getting smarter. Index mutual funds and ETFs are "passive," aiming to track a benchmark, such as the S&P 500 index. ...

  • Updated

MoneyTips


By Andrea Woroch

Every year, countless people throughout the country dream up personal finance-related New Year's Resolutions. Most of the goals are centered around saving more money, whether it's by earning more or spending less. Some folks have trips they want to take or projects they need to cross off their to-do list, while others just want the security of bolstering their savings accounts. Regardless of the goal, most people fail because they overlook the most critical step in achieving their objective - a well thought out plan. Below are seven detailed adjustments that will actually help you reach your financial target and lead a more financially responsible 2020.

1. Track your spending.

It's easy to blow your budget when you have no idea where your money is going. Tracking how you spend allows you to identify where you need to cut back — hello, Target! — which makes it easier to limit unnecessary purchases. Remember, you can't change what y...

8 Ways At-Home Entrepreneurs Can Supplement Their Income

Combat Thermostat Ignorance and Save

Say "No" to Save Dough

Having grown up with parents who encouraged recycling, Jenny Beightol has always been aware of her environmental impact. She doesn't own a car, and bikes or takes public transportation to get around town. But the 32-year-old Chicagoan sometimes likes to travel to places like Mexico. This has led to soul searching, because scientists say that planes account for about 2.5% of global carbon ...

MoneyTips


By Andrea Woroch

Every year, countless people throughout the country dream up personal finance-related New Year's Resolutions. Most of the goals are centered around saving more money, whether it's by earning more or spending less. Some folks have trips they want to take or projects they need to cross off their to-do list, while others just want the security of bolstering their savings accounts. Regardless of the goal, most people fail because they overlook the most critical step in achieving their objective - a well thought out plan. Below are seven detailed adjustments that will actually help you reach your financial target and lead a more financially responsible 2020.

1. Track your spending.

It's easy to blow your budget when you have no idea where your money is going. Tracking how you spend allows you to identify where you need to cut back — hello, Target! — which makes it easier to limit unnecessary purchases. Remember, you can't change what y...

8 Ways At-Home Entrepreneurs Can Supplement Their Income

Combat Thermostat Ignorance and Save

Say "No" to Save Dough

Sprint filed a lawsuit Tuesday alleging that three other telecommunications companies stole patents and trade secrets from the Overland Park-based company. The lawsuit, filed in Johnson County District Court, names as defendants Charter Communications, Bright House Networks, Time Warner Cable, and two former Sprint employees. Court documents allege the two former employees disclosed trade ...

LANESBORO, Minn. - Luis Hummel last week loaded his 2019 hemp crop - his second and his last - on a truck bound for a CBD processor in Colorado. After just two growing seasons, Hummel fell on the wrong side of the legal tightrope farmers must walk to raise hemp. A cannabis concentrate he produced that contained too much THC led to criminal charges and an agreement with state regulators that he ...

Get up-to-the-minute news sent straight to your device.

Topics

News Alerts

Breaking News