The coronavirus is capturing headlines across the world, but its effects are being felt in other areas. One notable impact is mortgage rates.<\/p>\n\n\n\n
Across the globe, consumers are keeping a close eye on the coronavirus outbreak, which\u00a0seems to infect\u00a0more people every week.<\/p>\n\n\n\n
Like the rest of the financial world, the mortgage market has also been affected by the coronavirus. <\/p>\n\n\n\n
With that being said, let\u2019s take a deeper look at how the coronavirus can affect your finances.<\/p>\n\n\n\n
Global crises and mortgage rates<\/strong><\/p>\n\n\n\n Experienced investors closely monitor the news, paying particular attention to anything that might cause fluctuations in the market. Considering China\u2019s share of the economy has increased to 19.3%, events that disrupt the industry in the country create a ripple effect.<\/p>\n\n\n\n That ripple effect has made its way to the States, where investors\u00a0are reportedly retreating to\u00a0safe-haven assets.<\/p>\n\n\n\n If the outbreak is contained and the number of reported cases remains steady, investors may regain confidence in the market and rates may head in an upward position.<\/p>\n\n\n\n Maybe you\u2019ve been thinking about buying a home. Maybe you love your existing home, but a lower monthly payment would be nice. Either way, variations in interest rates can make a big difference.<\/p>\n\n\n\n If you time your purchase or refinance right, you can save significantly.<\/p>\n\n\n\n But even sellers can see a big difference based on what the interest rates are when they sell. To understand how the current drop in mortgage rates affects you, we’ll try to break it down.<\/p>\n\n\n\n If you\u2019re currently in the process of buying a home, it can be tempting to halt your search based on what tomorrow\u2019s interest rates will be. But even though history tells us these rates may continue to drop, there are no guarantees when it comes to the future of the market. Rates are already low, so you\u2019ll be in good shape by locking in now, even if the rates drop a little more.<\/p>\n\n\n\n Unfortunately, you won\u2019t be the only home buyer taking advantage of low-interest rates. When rates fall, consumers start considering a home purchase, which drives up demand and, as a result, prices.<\/p>\n\n\n\n You don\u2019t have to be ready to buy a new home to take advantage of falling interest rates.<\/p>\n\n\n\n It can be predicted that interest rates might decline, hence, it\u2019s important to take a look at whether refinancing is the right choice for you.<\/p>\n\n\n\n But a drop in interest rates isn\u2019t necessarily a reason to refinance. <\/p>\n\n\n\n As always, the very things driving home buyers to start looking, benefit sellers. Home prices have already surged in many markets due to a lack of supply to meet the high demand. This can benefit you, the seller, as you can ask top dollar for your property.<\/p>\n\n\n\n The only thing putting a damper on that good news is that as interest rates drop, savvy developers get moving as well. That means your house will be competing with that brand-new subdivision down the road that boasts the latest style of kitchen and bathroom home buyers are seeking.<\/p>\n\n\n\n But there\u2019s more to interest rates than the market. Your\u00a0credit score\u00a0plays a direct role in the interest rate you\u2019re quoted, so you\u2019re better off working on\u00a0strengthening your credit score\u00a0than watching mortgage rates fluctuate.<\/p>\n\n\n\n It\u2019s important to crunch the numbers to determine if you\u2019d be better off buying or refinancing now or waiting until your credit score improves, taking a risk that the interest rate will rise again.<\/p>\n\n\n\n No matter what the economic environment is when you start shopping for a mortgage, it\u2019s important to compare rates. Even a small difference in the interest rate being offered can add up over the months and years you\u2019re paying on a loan.<\/p>\n\n\n\n But there\u2019s more to consider than the rate you\u2019ll pay. <\/p>\n\n\n\n The chosen lenders are based on your credit score, so you won\u2019t have to waste time putting in applications, only to be denied.<\/p>\n\n\n\n While you\u2019re keeping an eye on the news and staying safe, make sure you do a checkup on your finances.<\/p>\n\n\n\n Although, the CBK Monetary Policy Committee decided to reduce the Cash Reserve Ratio (CRR) to 4.25 per cent from 5.25 per cent, releasing Sh35.2 billion as additional liquidity availed to banks to directly support borrowers that are distressed as a result of COVID-19. <\/p>\n\n\n\n It’s unsure whether the mortgage rates will be dropped, we’ll have to wait and see during the coming weeks. <\/p>\n\n\n\n Hypothetically, you may find that with the lower interest rates, 2020 is a good year to make a change to your mortgage. Crunch the numbers to see whether refinancing or buying a new home is the best choice for your own bank account.<\/p>\n","protected":false},"excerpt":{"rendered":" The coronavirus is capturing headlines across the world, but its effects are being felt in other areas. One notable impact is mortgage rates. Across the globe, consumers are keeping a close eye on the coronavirus outbreak, which\u00a0seems to infect\u00a0more people every week. Like the rest of the financial world, the mortgage market has also been […]<\/p>\n","protected":false},"author":1,"featured_media":11903,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"amp_status":"","footnotes":""},"categories":[23],"tags":[],"class_list":{"0":"post-11894","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-real-estate"},"yoast_head":"\nFalling interest rates and your mortgage<\/strong><\/h5>\n\n\n\n
Buying a home<\/strong><\/h5>\n\n\n\n
Refinance<\/strong><\/h5>\n\n\n\n
Selling a home<\/strong><\/h5>\n\n\n\n
Choosing the right lender<\/strong><\/h5>\n\n\n\n
Summary<\/strong><\/h5>\n\n\n\n