The coronavirus has made one of the largest economic impacts in quite some time taking mortgage rates to historic lows. In the short term, buyers are gaining more confidence and that could lead to a much better outlook overall.
"The drop in mortgage rates and oil prices could boost consumer confidence, which rose less than expected in February just one day after the stock market had one of its worst days amid virus concerns," according to CNBC. "A boost in consumer confidence, in turn, could ease those recession fears."
If buyers are able to take out a mortgage for far less than anticipated, chances are their pockets won't feel that large of a hit. In addition, homeowners looking to refinance their mortgage could save quite a bit on their monthly payment. With a little more expendable cash, consumers may be more confident in spending the money in sectors that are struggling.
"Sectors such as entertainment and travel will likely need the most consumer support as the virus spreads and isolation measures are implemented across the U.S.," according to the report.
"Investors fear that the virus will disrupt supply chains as U.S. consumer and small-business confidence dips and jobless claims increase."
To learn more about the continuous impact of the coronavirus on the housing industry, click here.