The dominant topic in our current news cycle is the Coronavirus and clearly consumer mortgage rates are listening. In the last three weeks we've seen mortgage rates go from attractive to super attractive as fixed mortgage rates sit just above all time lows.
Heading into March the 30-year fixed rates are more attractive then 15-year fixed rates. 30-year fixed rates are just above 3.00% while 15 year fixed rates are only .125% - .25% lower rather than the more normal spread of .375% to .50%.
The Coronavirus impact to mortgage rates has been significant; but will it continue?
Being the mortgage industry for over 15 years I've come to learn a few things. When it comes to mortgage rates it's important to keep looking forward. Looking forward helps you make current decisions and prepares you for what might happen in the future.
I really try to avoid "predictions" because most predictions are wrong most of the time. What I'm talking about is making smart decisions based on what you know.What we know is that mortgage rates usually move higher after a crisis is somewhat resolved.
The second thing we know is that mortgage rates sometimes mover higher than where they were at prior to the crisis.
Knowing those two things and looking ahead you'll come to the conclusion that it's a great time to lock in and not think twice.
Is there a chance mortgage rates will move lower from these levels if the Coronavirus outbreak gets worse? Sure but there's a very small chance that will happen even if the outbreak gets worse.
Markets are pricing in a significant impact to world markets so any positive news that things are getting better will reverse quickly.
It seems like I was the last person to find out about HotFrog. As a mortgage professional who spends his day connected to the world wide web you would have thought that after 15 years I would have at least once heard of HotFrog. Nope; not until a few weeks ago.
A friend suggested maybe I had heard about it but thought it was nothing important. That might be the case since HotFrog does not exactly inspire anyone to think about expanding their business presence online.
Loan Officer Kevin O’Connor
JB Mortgage Capital, Inc.
CA BRE #01499872 – NMLS #247447