Coronavirus (COVID-19) and the global market turmoil it has created have had quite an impact on the mortgage industry. We have seen the biggest swings in mortgage interest rates at the fastest paces of all time. Rates have moved more than 1 point up or down multiple times in the last 2 weeks.
To put that in perspective, the fastest movement ever seen before was a change of 1 point over one MONTH. These latest swings were literally happening over the course of 2 or 3 hours.
Thankfully, the Fed has stepped in and settled the mortgage backed securities market down with a massive quantitative easing package. Rates have now settled in the low 3% range for conventional 30 year fixed rates.
However, government mortgages, Jumbo loans, HELOCs, and non-QM mortgages are a different story. There has been massive tightening of those programs (higher credit score limits, higher down payment requirements, lower loan amount limits, etc.), but these restrictions should only be temporary in nature.
Additionally, almost all the major mortgage loan programs have announced forbearance programs to delay your monthly mortgage payments if your income has been affected by COVID-19. This can be a great help for those of us who are struggling without income during lockdowns.
This unprecedented crisis is not only creating turmoil, but also opportunity. With rates at historic lows and housing demand potentially being delayed until the crisis subsides, smart homeowners can take advantage of this opportunity. Low rates mean more purchasing power for new homes and investment properties, and also the potential to save thousands of dollars by refinancing your existing mortgage.
The most powerful strategy is to connect with a mortgage professional and REALTOR® who can provide you with the right guidance to build your wealth through real estate.
Apply Online, call, email, or text me today to get the your own custom analysis, and to get more information on the effect Coronavirus is having on the mortgage and real estate market in the Golden Isles and the Southeast.