NOW IS THE TIME TO BUY IN VEGAS
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Zero Rates and Sub-1% Bond Yields Are a Silver Lining for Homebuyers – Now’s the Time to Buy

As we all deal with the uncertainty of the coronavirus, there’s a silver lining for homebuyers – interest rates and bond yields are at unprecedented lows making it an ideal time to purchase a new condo or house. For a perspective on why the time is right to purchase a new home, here are a few excerpts from recent articles and advice from financial experts.

Borrowers are poised to benefit from the combination of lower rates and a drop in bond yields

Interest rates are at unprecedented lows and benchmark bond yields have dropped below 1% for the first time in history, conditions that are expected to cut borrowing costs even further on mortgages.

The Federal Reserve lowered borrowing costs to near zero on March 15, 2020 in an emergency move to combat the economic shocks from the coronavirus pandemic. Meanwhile, the 10-year Treasury yield, a key benchmark that influences borrowing costs on houses and auto loans, slumped further to historic lows this month.

Experts say borrowers are poised to benefit from the combination of lower rates and a drop in bond yields in the coming months.

USA Today, March 16, 2020 “What zero rates, sub-1% bond yields mean for your mortgages, student loans and credit cards” –

Locking in your loan

If you haven’t done so already, make sure your loan originator has what they need in order to lock your loan when the time is right.  Make a game plan.  Talk about where rates are now and what rate you’re looking to lock.  They have to have what they need from you in order to lock, and they may not have a very big window in which to pull the trigger (that window was less than a few hours wide at the all-time low rates last Monday morning).

Above all else, please don’t call them and ask if you can get a lower rate now.  Don’t ask them if the Fed just cut mortgage rates to 0% or if your rate is now going to be 0.50% lower (that could happen, but it didn’t happen today).  I can give you the answer right here: You can’t get a lower rate right now just because the Fed cut rates again.

You CAN, however, probably get a lower rate at some point in the coming weeks thanks to the Fed’s reinvigorated mortgage bond-buying efforts

Mortgage News Daily, Match 16, 2020 “What The Fed’s Emergency Rate Cut Means For Mortgage Rates”

Mortgage rates likely to fall again

Mortgage rates are primed to fall again after the Federal Reserve’s latest dramatic policy moves to combat the economic impact from the deadly coronavirus pandemic.

The Fed on Sunday, March 15, 2020, said it will begin buying $200 billion of mortgage-backed bonds, a move that will stabilize and likely lower mortgage rates, which moved sharply higher last week. This is part of a brand new, $700 billion round of quantitative easing in response to the COVID-19 crisis. The central bank also slashed rates to zero.

Mortgage rates had fallen to a record low two weeks ago, but a flood of refinance applications overwhelmed lenders and caused investors in mortgage-backed bonds to back off. That, in turn, caused mortgage rates to jump more than 50 basis points in one day and hit their January high by the end of last week. The Fed’s move will likely reverse that course yet again.

CNBC March 15, 2020 “Mortgage rates likely to fall again after the Fed’s latest dramatic response to coronavirus”