RANDOLPH, NJ- The market is on edge. The Coronavirus fears are creating instability on Wall Street. Financial Advisors are always preaching that it is a best practice not to let emotions dictate your decisions, and to have a long-term view of investing. That is tried and true advice for most of us. But, while the wild fluctuations might make us a bit sea-sick watching our 401K’s ebb and flow, it is fueling record low mortgage rates.
In simplistic terms, investors move money from stocks to bonds to mitigate risk which, drives down the bond yields. The yields on treasury bonds is a driving force behind mortgage rates. This week, the yield on the 10-year treasury note dropped below 1% for the first time ever. The effect is an all-time low for mortgage rates.
I am always asked “Do you think that the rates will go lower?” Frankly, I have no idea and, the truth is, nobody does. What I can tell you is that mortgage rates are poised to jump as soon as the market gets its legs back underneath it.
I always preach that you don’t want to miss the boat. This opportunity may last for a few months, a few weeks, or a few days. You can refinance to lower your payments, shorten your term or to take cash out for purposes such as debt consolidation, pay for college tuition, or to do home improvements. A refinance can be a financial game changer.
If you have want to find out if refinancing is right for you, give me a call or text me at (201)715-2251 or email me with a copy of a current mortgage statement to Lbodnar@PLSMTG.com. Your information will remain confidential, and there is never an obligation to move forward unless it makes sense for you to do so. Let’s hope that Coronavirus will end up being more bark than bite, and that no one we know will be affected. Let us also say a prayer for those who have been affected.