The Coronavirus has caused a great deal of concern not only on the health front, but on the home front as well. The 30-year fixed-rate mortgage averaged 3.51% during the week ending Jan. 30. The average rate on the 30-year mortgage is almost a full percentage point lower now than it was a year ago. The 15-year fixed-rate mortgage sank four basis points to 3%, according to Freddie Mac. The 5/1 adjustable-rate mortgage also fell four basis points to an average of 3.24%. The reason behind the sudden rate drop is due to rising health concerns in China and throughout the world, increasing the volatility in equity and bond markets.
In a recent article from Market Watch, they write: “Notably, when it comes to mortgage rates, the yield on the 10-year Treasury note TMUBMUSD10Y, -2.28% has fallen over the past week. Mortgage rates typically follow the direction of the Treasury note. As a result, mortgage rates could go even lower if the coronavirus proves to be a major damper on markets.”