When the economy is hit, mortgage rates usually plunge. Owing to the worldwide spread of the COVID-19 pandemic, mortgage rates have been more volatile than ever. Several aspects need to be considered while deciding if it is indeed a favorable period to buy a home or refinance your loan. The Federal Reserve has attempted to stimulate the economy by cutting down the interest rates to almost zero. However, since there is no direct link between mortgage rates and Federal directives, we are currently experiencing a trickle-down situation. Thankfully, the experts at Rex Homes have provided some additional information on how to handle this situation on their website.
What Are Pros Saying About the Mortgage Rate Volatility
Rapid changes have been observed in the housing market, and yesterday’s predictions may no longer be relevant today. As the market is dealing with volatility, the Fed is trying to put lenders at ease by establishing mortgage rates accordingly. In this unstable market climate, mortgage pros recommend homebuyers and owners to talk to a professional mortgage expert and find out the refinancing and purchase options. Experts also suggest reaching out to the loan originator to learn more about the rates, decide if the rate is reasonable, understand the process of locking down the rate and closing the loan within the required time frame.
Should You Buy A Home Right Now?
Several businesses have shut their doors, and many employees have lost their jobs due to COVID-19. In these circumstances, purchasing a house is a personal decision and should be made after evaluating your current economic situation. If you are lucky and have a stable job in hand, this uncertainty in the economy could be a good time to buy a house.
Housing prices have remained affordable since they peaked in 2006. This is a great opportunity to secure a low-interest mortgage if you have the necessary financial backing to buy a house. If you are planning to buy a house, you can contact a mortgage professional who can help you navigate through the entire home buying process and even assist you in securing a low long-term mortgage rate during this rough climate.
Should you Refinance?
The Fed has pledged to buy huge sums of government-backed debts to stabilize the housing market. If experts are to be believed, this action should favor homeowners. The pros at mortgage companies suggest homeowners check with their lenders if any refinancing options are available and lock down lower rates to save huge sums on their mortgage. However, mortgage pros warn that as the rates fluctuate more than ever, you may lose out on a good rate if you wait too long. There is currently no guarantee that the rates will continue to go down.
One challenge currently faced with refinancing is that since there is nationwide stay-at-home order and social distancing norms are being practiced, it is not easy to meet a broker in person and discuss refinancing options. Homeowners can overcome this by hiring an expert mortgage professional who has the resources to function remotely and can virtually assist you, evaluate your current mortgage rate and provide details on how much you can save.