The coronavirus has driven fear into investors. As a result, rates are inching closer to a 50-year low, according to Freddie Mac. The question is, how low will mortgage rates actually dip?
"A buyer taking out a $200,000, 30-year fixed-rate mortgage at today's average rate of 3.45% will pay $100 per month less than someone who took out a similar loan a year ago, when rates were averaging 4.35%," reports Yahoo Finance.
"As for homeowners, the analytics firm Black Knight says 11.1 million of them can save an average $268 a month by refinancing their mortgages at today's low rates."
The report states that current rates are close to a November 2012 low of 3.31%. To put into terms just how low rates could dip, the report mentioned that the November 2012 rate was the lowest since Freddie Mac began its weekly survey in 1971.
The volatility of rates even has mortgage experts stunned, though, lenders may not be keeping up with the Treasury. Some experts like Matthew Graham, chief operating officer of Mortgage News Daily, believes at no time in modern history have mortgage rates move so significantly or aggressively. Other expertss like Matthew Speakman, an economist for Zillow, believes that rates will only go as low as lenders let them. He predicts there will come a point where lenders won't opt to continue to lower their rates but instead, "quote conservative rates and wait until the storm passes."
To learn more about interest rate volatility and how low rates could go amid coronavirus concerns, click here.