Refinance Applications Hit 10 Year High Amid Coronavirus Fears

coronavirus refinance mortgage

  • 30-year fixed-rate mortgage rate on a $400,000 loan is 3.5%
  • Mortgage applications are up 55% in the past week, 192% in the last 12 months
  • The Dow Industrial Average is down 20% in the past month alone
  • San Fransico and Washington state have outlawed gatherings of more than 1,000 people

The fears surrounding the Coronovirus are already hitting the stock market hard.

46 of the S&P 500 stocks are down 50% from their 52-week high.

Interest rates have been slashed as the market.

Check Today’s Mortgage Rates

Mortgage Rates are Over 1% Lower than a Year Ago

As rates have been cut refinance applications have been on the rise, up 55% week over week and 192% from this time last year.

The interest rate on a $400,000 30-year fixed-rate mortgage loan is 3.5%, that’ the lowest rates have been since 2012.

Homeowners with an interest rate of 5% or higher can potentially save tens of thousands of dollars over the life of their mortgage by refinancing at a lower rate.

Government Stimulus

On Monday, rates increased on the heels of the news that the Government will be introducing stimulus packages to combat the financial issues surrounding the COVID-19 virus.

Mortgage rates have come off their record lows and took a sizable move higher on Tuesday, as news of potential government stimulus to combat the financial effects of COVID-19 circulated.

Gatherings of 1,000 people outlawed

San Fransico and Washington state have outlawed gatherings of more than 1,000 people. This means Golden State Warriors’ home games will be played in an empty stadium on Thursday night. NBA league sources believe more cities will be outlawing large gatherings leading to games being played in empty stadiums with no fans, or be postponed altogether.