With mortgage rates hitting a historic low of 3.29%, it has folks wondering if mortgage rates could dip below 3%. While the drastic rate drop is abnormal and attributed to coronavirus concerns, Jay Farner, Quicken Loans CEO, says don't count on rates moving below 3%.
"I don’t see a 30-year fixed rate mortgage below 3%. I think we were seeing a lot of uncertainty, and that creates volatility in the market, which is causing the drop in the 10-year Treasury and mortgage rates," said Farner in an interview with MarketWatch.
"Bad or good news, certainty about what’s going to happen I believe will cause interest rates to rise. Right now, we have a complete lack of certainty, and so that’s why we’re seeing this."
Farner also said that this situation is much different from 2012's series of rate decreases. The coronavirus is impacting the views on the health of the country and with that comes uncertainty. However, he believes that once certainty over the country's health is back up, the rates will follow suit. Farner also revealed that while his company understands the rush to refinance, he still wants to help the consumers understand this time a bit more.
"It shouldn’t just be, 'Hey, I heard rates dropped, I refinance my house, I’m done.' No, you should be aware of what’s happening in your neighborhood," said Farner, according to the report. "You should be aware of the equity that you’re building in your property. You should be aware of the trends in interest rates, and you should leverage all that data. We should be able to present that to you where you can be really informed about the ownership of your home all the time."
To check out the entire interview click here.