The coronavirus has helped prospecting homebuyers as mortgage rates have hit an 8-year low, according to a CNBC report. Rates could trend lower as financial markets continue to stay on alert.
"That rate hit 3.34 percent for one day in the summer of 2016, before spiking much higher that fall. Before that, rates were this low in 2012. While rates generally follow the 10-year yield, there are certain market factors that keep rates above a certain level," according to the report.
"When rates fall this quickly, it’s not so much that big banks draw the line on mortgage rates, but rather, the underlying Mortgage Backed Securities (MBS) market refuses to improve as quickly as the Treasury market," said Matthew Graham, chief operating officer at Mortgage News Daily.
Lower rates have sent refinance applications skyrocketing to nearly 165 percent annually, according to the report. Meanwhile, mortgage applications to purchase a home haven't been increasing at the rate of refinances due to a lack of inventory.
To learn more about the current state of mortgages rates as a result of the coronavirus scare, click here.