TODAY Represents a Golden Opportunity To Lock in the BEST RATES IN U.S. HISTORY.
Home loan rates touched all-time lows the week of March 2, 2020, fueling refinance activity and creating a sense of urgency for homeowners to lock in purchase loans.
The question many people are asking is, "how low can rates go?"
The short answer – no one knows. The answer will be determined by the economic impact of the Corona Virus & that's impossible to know at the moment.
What do we know:
The Corona Virus outbreak is improving in China & the outbreak numbers here in the U.S. have not exploded, as some thought it might. This is good news, should it continue, it is unlikely we'll see much lower home loan rates in the near future.
Home loan rates have not improved in step with the 10-year Note yield, which has also declined, to a historic low of .66%. The reason – mortgage backed securities (MBS), where home loans are priced, carry a different risk profile than the Treasuries. MBS investors are subject to refinance risk when rates go lower. To offset risk, investors demand a premium within MBS which creates higher prices to both the lender and the homeowner.
Mortgage lenders have been so busy they can hardly keep up with the business. So, what's the one thing you don't do when business is so busy? Lower Price.
Bottom line: Today represents a Golden Opportunity to lock in the best rates in the history of the U.S. and should be taken by those seeking to buy a home or refinance. You may not see these low rates again. That also means, it's a Perfect Time to Put Your Home on the Market to Sell.
If you or someone you know has questions about home loans, Give Me a Call and I'll be happy to refer you to an outstanding person in the Lender Industry
who will be delighted to help you with your needs. OR, if you wish to List Your Home For Sale during this Historic Rate Cut Give Me A Call Today!
I'll be happy to help either way. Sheri' 318-488-1760 Your Local Realtor!