Last Week in Review: The Lowest Rates EVER
Bonds love bad news, uncertainty, and fear, which is causing rates to move lower.
This past week, the escalation of the coronavirus fears caused enough anxiety to push rates down to the lowest levels in U.S. history.
Here’s what we know: Mortgage Bonds, which determine loan pricing, ticked to the best levels ever on Thursday, and the 10-year Note yield hit 1.25%, the lowest EVER!
Here’s what we don’t know: what is next for the coronavirus or its impact on the global economy.
With that said, if the coronavirus story brightens at all and becomes less uncertain or better, we could easily see rates move up just as quickly as they moved lower. On the other hand, should the coronavirus story worsen deeply, we should expect rates to fall further.
Bottom line: with rates at the lowest level in our history and hinging on the status of the coronavirus outbreak, now may present the opportunity of a lifetime to either refinance or purchase a home.