Mortgage Rates Plummet as Coronavirus Fears Spread
February 24, 2020
Concerns about the spread of coronavirus and its impact on global supply chains have roiled the markets. U.S. bond yields are dropping fast, and pulling mortgage rates down with them. Mortgage rates are not pinned to, but loosely follow the10-year Treasury yield.
The average rate on a 30-year fixed mortgage fell to 3.34% Monday. A rate this low was briefly seen in 2016, before increasing. The last period when rates were this low for an extended period was 2012.
While this is good news for potential buyers, stricter lending standards, high costs, and low availability have mortgage application volume low. Homeowners looking to refinance, however, are taking advantage of the low rates in a big way. Applications to refinance a home loan have surged 165% annually.