While coronavirus draws growing economic fears, there is a silver lining: a record-level drop in mortgage rates.
Earlier this week, the stock market slumped due to coronavirus fears, but that’s great news for interest rates.
“I know we always say it’s a great time to buy,” Kevin Wildman, a branch manager with Lake State Mortgage, told WZZM 13. “But we’ve never seen anything like this before.”
Wildman says the rates are at historic lows because investors pulled money out of the stock market and put it into the bond market. This caused interest rates to drop with a majority hovering around 3 percent. This trend is expected to continue throughout the summer, dropping near the 2 percent range.
Currently, rates are about a point and an eighth lower than this time last year.
In West Michigan, it has turned into a sellers’ market. In fact, inventory is so low, home builders are seeing a steep increase.
“The inventory that’s currently on the market is very limited,” Sable Homes Sales Manager Karin Kay told WZZM 13. “There’s not a lot of options for people, and people are compromising to find something they can move into.”
Kay said this is the perfect time to take advantage of the low interest rate, lock it in, and take an option to build a new home.
“We’ve been higher than average in the last few months because it’s letting people purchase the extra $5,000 to $10,000,” she explained during her interview. “It can sometimes open up a new world for people for homes on the market.”
Read the full WZZM 13 story, here.