If you were thinking about refinancing your mortgage, now might be the best time to do just that.
Fears about the coronavirus pandemic have hit the stock market hard. But, when investors start pulling their money from stocks, they put it into bonds.
“The bond market has taken a beating,” said Jennifer Johnston, a vice president and mortgage consultant at Countybank.
She said the relationship between the bond market and mortgage rates. As investors buy bonds and the bond market goes up, mortgage rates go down.
She further explained that the government stimulus of putting money into the economy has created a great situation for new purchase mortgages and refinancing. A 15-year refinance was seeing rates in the high 2%.
Mortgage consultants such as Johnston have felt the impact.
“We had a huge refi request,” Johnston said. “The requests were more than we could handle.”
The COVID-19 pandemic has also impacted how closings are taking place. Attorney’s offices are still having in-person closings but are limiting the number of people in the room to just the buyer and seller. Mortgage consultants are getting information electronically to reduce the amount of human contact needed to complete a closing.