The rapid international spread of the coronavirus is striking fear in investors and shaking financial markets. As of Monday morning, there have been 89 confirmed cases in the U.S.  How and why is this impacting the housing market? Coronavirus fears have prompted mortgage rates to drop because investors are pulling their money out of stocks and putting it into steadier U.S. Treasury bonds. When bonds perform strongly, particularly, the 10-year Treasury note, mortgage rates tend to dip

Low mortgage rates will entice buyers and sellers to get into the market. With mortgage rates likely to reach all-time lows, buyers will want to lock in, even with growing economic concerns.

Foreign investors may find it more difficult to invest in the U.S. market due to more restrictions on travel. Nevertheless, low mortgage rates may entice some buyers to purchase now rather than wait. NAR reported last week that contract signings climbed 5.2% in January compared to the previous month and were up 5.7% from a year ago. The 30-year fixed-rate mortgage fell to 3.45% last Thursday, Freddie Mac reported. “Buyers right now are trying to juggle whether or not they should jump in when mortgage rates are this low,” Ali Wolf, director of economic research at Meyers Research, told realtor.com®. “What looks like a home that’s out of reach may actually be very affordable on a monthly payment schedule.”

In the short term, at least, low mortgage rates could cause a boost in home sales, but it will depend on if the virus continues to spread in the U.S. Some people could put a home purchase on hold,” According to data from The Centers for Disease Control and Prevention, there have been 88,443 confirmed cases of the coronavirus world-wide. There have been 3,041 deaths from the virus, 2,912 of which have been in China, mostly elderly, and those with compromised immune systems.

About the author

The Waikele Group

The Waikele Group

Your Trusted Real Estate Advisors

Your New Home In Hawaii® Looking for your first home, retirement home, or something in between, visit THE WAIKELE GROUP for more information on buying or selling your home. Lester A. Salazar, RA, GRI, MRP, e-PRO® Born and raised in Hawaii, Lester grew up in the shadows of Diamond Head, has lived in neighborhoods like Waipahu, Nuuanu, Salt Lake, Newtown, Mililani Mauka and now calls Wahiawa home. Trust, Leadership, and Organization A licensed Real Estate Agent in the State of Hawaii, specializing in Oahu residential properties, Lester has 30 years of experience in the IT industry, working for companies like Computerland, City Bank, The Queen's Medical Center, Xerox Business Services and others. IT is an extremely demanding field and has given Lester the skills to problem solve and negotiate in a variety of situations while maintaining a calm, cool, collected demeanor. The skills learned in the corporate world transfer nicely into Real Estate. Using Technology to Make Life Easier Establishing lasting business relationships and providing excellent client satisfaction are essential parts of his business. With over 90% of buyers now using the internet to begin their search, Lester specializes in social media and real estate websites to promote and attract business. Internet presence is very important to Lester, as he has nurtured his online presence for over a decade. Digital is the future, and Lester provides a seamless experience eliminating time-consuming documents. Contracts are created online, and signatures are secured online in real-time, allowing unparalleled flexibility and timely delivery of contracts. Buying or Selling, Lester is your trusted local Wahiawa and Central Oahu agent. Get your FREE home market valuation report. Visit Your Oahu Home Value. Lester is full time, full-service real estate agent and one of the top agents in his office. Lester is a technology trainer and provides classes for other agents. He is a graduate of the Realtor Institute (GRI), a Military Relocation Professional (MRP), and e-PRO® Specialist and is SmartHome certified. Lester is also a certified drone pilot and utilizes his skills as a remote pilot and photographer to provide professional photography services to his clients. Lester is also an accomplished real estate photographer, and certified drone pilot.

More posts

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.