Getting the best rate on a thirty year fixed mortgage rate depends on a number of factors but the Corona Virus has complicated things.
How Today’s Rate is Impacted
The year started off strong with a tight housing supply available and prices rising accordingly. Building was also strong. Currently, it appears that homeowners are holding off on listing new sales and building is slowing. In an effort to stabilize the market, 30 year fixed mortgage rates are at some of the lowest seen averaging close to 3.8%
The problem is that the supply and demand sides are both impacted at the same time introducing a level of doubt into all sectors. Even with rates low, available houses for sale have dropped, along with demand.
How will the market affect the 30 year fixed mortgage rate?
All signs point to the rate remaining at historically low levels for the near future. As long as the market is being depressed by today’s circumstances, you can expect the rates to remain low. In addition, the Fed is putting the brakes on foreclosures so that the market isn’t flooded with low priced houses, in an effort to stabilize prices.
What influences the 30 year fixed mortgage rates?
There are a number of factors that will influence the rate you are able to negotiate. First, your credit score is an important factor, as well as your income. In addition to these factors, every area of the country is different.
The inventory is dropping as homeowners hold off to see what happens. At the same time, unemployment is skyrocketing, limiting the number of potential buyers. However, investors are beginning to flock to the housing market in an effort to park their money somewhere besides the volatile stock market.
Conclusion
The best estimate is that the 30 year fixed mortgage rates will remain at historically low levels for the foreseeable future. Though, we are in uncharted territory and much uncertainty exists.