COVID-19’s Effect on Mortgage Rates

COVID19 Effect Mortgage Rates

The effects of COVID-19 are being felt across the country and in lots of industries in many different ways. As for housing, this will affect how you buy and sell homes in the immediate future, especially because of the historic impact on mortgage rates.

Mortgage Rates at Record Lows

With the COVID crisis affecting the lives of millions of Americans, the Federal Reserve stepped in and took several different steps to protect the economy.

Why Are Rates So Low?

After much volatility in the early months of COVID-19,  the United States Federal Reserve bought billions of dollars in mortgage-backed securities which acted as a stimulant to the mortgage system and resulted in a drop in mortgage rates.

The sudden lack of homebuyers from the initial phases of the pandemic also created a higher demand for lenders seeking to create more mortgages which drove rates down, also.

Will They Stay Low?

Nobody knows for sure what is going to happen in the future when it comes to mortgage rates. Many things in the country are changing rapidly and that change trickles down into real estate. But, it’s expected that mortgage rates will remain low but with some volatility expected which could result in small bumps here and there.

Is Now the Right Time to Buy?

Seeing low rates may entice you to make a move you’ve been considering and, for the most part, if you can find a home you like then it might be a good time to buy to get the low rates.

But, you should know that, due to COVID, there are fewer homes on the market than you are used to seeing. This lack of affordable homes will limit your options which will be the biggest hurdle you will face in the home buying market now and in the foreseeable future.

With such an ever-changing landscape, in real estate and beyond, it’s truly impossible to predict what could happen. While many predict that mortgage rates will stay low—accented with an occasional spike—it is difficult to tell whether or not it is a good time to buy. The best bet? Do some research and reach out to your local lender about what mortgage rates you could get on a mortgage and decide what is best for you.

For further information on the mortgage rates and real estate, get in touch with one of the title and escrow specialists at Plymouth Title Guaranty Corporation.

Please note: The safety of our staff and clients is our highest priority.  Effective immediately, Plymouth Title Guaranty Corp. will be taking the following precautions to limit the spread of the COVID-19 virus:

All purchase transactions need to take place at a Plymouth Title Guaranty Corp. closing office

  • If a party to the closing is not feeling well, please contact your closer prior to the closing so appropriate precautions can be taken.
  • We ask visitors to utilize the restroom in our building upon arrival to thoroughly wash hands before entering our office.
  • Only individuals required to sign and/or deliver documents at closings will be allowed in our office. Specifically, closings will be limited to borrower(s), seller(s), agents, and lenders.
  • All pens used in the closing will be given to the client after use.
  • All closing rooms will be cleaned and disinfected in-between each closing.
  • Those picking up checks at our office will be instructed to call our main line and request to speak to a staff member who will plan for delivery to the lobby or parking lot of our office.
  • All staff will refrain from shaking hands before or after closings and ask clients do the same.

Please be advised that our staffing may be impacted during this unprecedented event. While we are committed to continuing to provide outstanding service, we ask for your patience in the face of this pandemic.