One of the top questions that many real estate analysts have had over the last several weeks is if the coronavirus will affect the real estate market in the United States? The answer to this question is it depends.
Right now, the coronavirus is still in its early stages and it's largely restricted to China but, since a large number of Chinese home buyers have purchased homes in the United States over the last two years, if the virus does continue to spread, the reality is that it could likely affect home sales in the United States.
What About Mortgage Interest Rates?
With the spread of the coronavirus, it's likely that mortgage interest rates in the United States will decline even further because, the Federal Reserve will be eager to do everything within its power to prop up the real estate market and prevent a full-blown crash from happening.
Mortgage interest rates were already predicted to stay at 3.5% this year thanks to the upcoming elections but, with the onset of the coronavirus, it's likely that we could see lower interest rates than what most economic analysts initially expect it.
Although the World Health Organization did not sound the alarm by naming the virus a public health emergency last week, investors are still on edge.
“Nervous markets are often good news for mortgage rates, and the current nervousness about coronavirus is no exception,” says Greg McBride, CFA, Bankrate chief financial analyst. “Market concerns about the possible economic impact of the virus are driving bond yields and mortgage rates lower.”
Source - Bankrate.com
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