‘Now is the time to strike’ What the virus outbreak means for homebuyers
are not directly affected by Fed rate decisions, they can’t resist the general direction of the bond market. Lenders use the 10year Treasury as a guide to pricing loans, and the yields have reached record lows.
So it was not a big surprise to see that the average rate on a 30-year fixed mortgage hit a record low of 3.29% on March 5. This marked the lowest for a 30-year fixed mortgage since Freddie Mac started tracking such rates in 1971, the mortgage buyer said.
The news is also good for those with or shopping for adjustable-rate mortgages and home equity lines of credit, which are directly guided by Fed rate cuts. dence that you’ll be able to get a loan and that the sale will go through.
Limit contingencies, such as requesting that the seller make repairs or pay your closing costs.
Let the seller know that you can be flexible about the closing date if that’s possible.
If the fear of COVID-19 makes you reluctant to tour homes but you’re committed to buying this year, “now is the time to strike,” says Daryl Fairweather, chief economist for Redfin, an online real estate broker. “People who commit now are going to have an advantage over people who wait.”
Plenty of homeowners are refinancing now. Lenders are enduring heavy workloads. You can do your part to lighten the load by submitting a complete application, with all the necessary documentation. Online applications usually will let you know if you haven’t provided all the necessary documents.
Another tip: Know why you’re refinancing so you can get the right loan. It might be to get a lower monthly payment, to shorten the loan term, replace your adjustablerate mortgage with a low fixed-rate loan, to borrow more than you owe in a cash-out refinance, or to get rid of FHA mortgage insurance.