Coronavirus spurs refinancing spree as rates sink to 50-year lows

Last week the 30-year mortgage rate fell to a 50-year low of 3.29%

National /
Mar.March 11, 2020 01:00 PM
Homeowners are rushing to refinance their homes as mortgage rates sink amid coronavirus concerns (Credit: iStock)
Homeowners are rushing to refinance their homes as mortgage rates sink amid coronavirus concerns (Credit: iStock)

Homeowners are rushing to refinance amid historically low mortgage rates.

The volume of refinance applications grew 79 percent in the first week of March — the highest since the post-recession period, Yahoo Finance reported, citing data from real estate finance trade group the Mortgage Bankers Association. The increase was the largest week-over-week since November 2008, and volume was six times higher than it was during the same week last year.

The surge in refinancing comes as markets are reeling from COVID-19, or coronavirus. Last week, the 30-year mortgage rate fell to a 50-year low of 3.29 percent, and last Monday was the busiest day for mortgage applications in Quicken Loans 35-year history.

“Market uncertainty around the coronavirus led to a considerable drop in U.S. Treasury rates last week,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a press statement. “Homeowners rushed in.”

Freddie Mac will release mortgage rate numbers on Thursday.

Experts predict rates will remain low, or sink even further. The low-rate environment is a mixed blessing for the housing market. While it’s a boon for first-time buyers, low mortgage rates can also discourage homeowners from selling. [Yahoo Finance] — Georgia Kromrei


Related Articles

arrow_forward_ios
Los Angeles rents are increasing - but not yet at pre-pandemic levels (Getty)
Rents in LA are climbing from their pandemic lows
Rents in LA are climbing from their pandemic lows
(Getty)
No more tiers — California’s economy fully reopens
No more tiers — California’s economy fully reopens
The Chateau Marmont (Getty) and protest signs (Unite Here Local 11)
Chateau Marmont workers say iconic West Hollywood hotel misused rescue funds
Chateau Marmont workers say iconic West Hollywood hotel misused rescue funds
Gov. Gavin Newsom (Getty, iStock)
$2.6B rent relief program hampered by delays
$2.6B rent relief program hampered by delays
California is waiting to adopt the CDC maskless decision. (Getty)
California still says mask up at office, for now
California still says mask up at office, for now
(iStock)
Buildable home lots in LA and Orange counties at lowest levels
Buildable home lots in LA and Orange counties at lowest levels
L.A. County Public Health Director Barbara Ferrer (Getty, iStock)
LA County to retailers: Masks still a must
LA County to retailers: Masks still a must
Chime CEO Chris Britt and 101 California Street (Google Maps)
Fintech firm may sign biggest lease in San Fran of pandemic
Fintech firm may sign biggest lease in San Fran of pandemic
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...