The coronavirus has caused a domino effect as it sends mortgage rates down to the lowest level since November 2019. As a result, mortgage applications are on the rise as they have jumped 7.2 percent in the last week.
Meanwhile, the average contract interest rate for 30-year fixed-rate mortgages with a balance of $510,400 or less dropped 3.81 percent, according to a CNBC report, which cited statistics from the Mortgage Bankers Association. Rates have already been on a decline due to political uncertainty and tensions.
"Mortgage applications continued their strong start to the year, as borrowers acted on the drop in mortgage rates last week," said Joel Kan, an MBA economist, according to the report.
"Rates were driven lower by investors’ increased concern about the economic impact from China’s coronavirus outbreak, in addition to existing concerns over trade and other geopolitical risks."
To learn more about how the coronavirus is affecting the mortgage industry, click here.