In early June 2020, mortgage rates did something unusual: they set a record-low by dropping under 3%. Mortgage News Daily reports that the rate for 30-year fixed loans hit 2.97% at a time many experts were thinking the rate was about to go up.
Is this highly attractive rate connected to concerns about a second wave of Covid-19 that may sweep America in the coming weeks and months? Possibly. But either way, it’s good news (for the moment, anyway) for people in the market for a new home – especially for top-tier borrowers, who are getting rates as low as 2.75% from some lenders.
In the Mortgage News Daily report, it notes that any rise in interest rates likely will be tied to the ability of the nation to recover and reopen after months of shutdowns, lockdowns and skyrocketing unemployment caused by concerns about the coronavirus infection. Meaning, if things turn a good corner and everything starts surging ahead, rates aren’t going to stay bottomed-out.
But if things don’t turn upwards, we may be seeing low – or even lower – interest rates for some time. One of the problems with the national Covid-19 hysteria is that it’s impossible to tell how far and fast the virus will spread and what the fallout will be.
Back in January, none of us could have ever imagined an America like the one we’re living in now. We in Arkansas have it relatively good, compared to some states that have instituted mandatory sheltering-in-place orders. Other states are really suffering, with no clear end in sight.
Take advantage of something “positive”
It’s a shame that home buying and mortgage rates have to be so closely linked with a worldwide pandemic, but it is what it is, and we all just try to do the best we can until we start seeing some definite light at the end of this tunnel.
So the bottom line if you’re looking to buy a home and get a highly attractive fixed mortgage: now is the time to make your move. The real estate market nationwide has been sluggish, and in Fort Smith, we’ve definitely seen our ups and downs. But there’s still activity, and the Fed is trying to keep that activity as stable as possible, so now is about the best time to get into a new home, at least from a financial standpoint.
Nick Glidewell
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