What Coronavirus Means for Mortgage Rates and Your Home Loan
The COVID-19 pandemic impacted everyone in many ways. On the economic side of things, real estate and home buying has seen some changes—some of which are quite positive for home buyers and homeowners. To protect our economy and mitigate some of the financial damage caused by the pandemic, the Federal Reserve took many actions that led to lower interest rates on mortgages and home equity loans.
COVID’s Impact on Your Mortgage Rate or Home Loan
In the second quarter of 2020, the Federal Reserve began slashing the federal funds rate, which is the rate banks can charge other banks. They also stabilized markets by purchasing government securities. Finally, they ensured liquidity would not be an issue by supporting the Paycheck Protection Program and the Main Street Lending Program. All of these things led to lower mortgage rates as the markets were reassured by these swift actions.
What Low Mortgage Rates Mean for You
Low rates can mean a few different things for you depending on where you are in the home owning process:
In the market
While mortgage rates are low, there is currently a shortage of inventory throughout the country, which means that we are in a seller’s market. Therefore, if you’re in the homebuying stage, you may find that the selection of homes on the market is slim. Many potential sellers had chosen to back out of the market, in part due to the virus and not wanting to open homes up for viewing.
If you, like many homeowners, are seeking to refinance in the wake of these lower interest rates, then do not wait. Rates may increase as a more satisfactory employment rate is achieved and the Fed tries to battle rampant inflation. To streamline the refinance process, reach out to a mortgage professional who will know exactly what program will benefit you best.
Find Your Mortgage Rate or Home Loan Solution at Butler Mortgage
For over 25 years, Butler Mortgage has worked with both first-time and seasoned buyers wanting to own a home in Central Florida. Our mortgage professionals can help you navigate the mortgage process and secure desirable rates that fit your budgetary needs.
Let us help you find the right loan solution for you by calling 407-931-3800 or by filling out our free consultation form online.