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Covid-19 and Mortgage Rates

The financial markets have been active in December to say the least. The stock market has taken a beating this week but mortgage backed securities have been booming and mortgage rates are falling! So let’s be clear, we do not root for turmoil or crisis but there is a little silver lining to the new Omicron concerns – mortgage rates have dropped back down to the lowest point since September and now is a great time to refinance! The financial markets operate in a supply and demand landscape. When the stock market is on a heater – many investors shift their attention to stocks and bond prices fall. But when a crisis hits, investors shift to more stable investments like bonds and prices rise. If you consider the catalyst for historically low rates was the official state of emergency for Covid 19, it helps to make sense of how these markets work. Crisis do not last long and neither will these low interest rates. If you are interested refinancing before the new year, give us a call today to get in before rates go up!