Mortgage refinancing increases as fear over COVID19 cuts interest rate

Mortgage refinancing increases as fear over COVID19 cuts interest rate

- The fear of the spread of the coronavirus has led to an increase in the refinancing of mortgages

- Mortgage refinances have increased by 26% as people seek to lower their monthly repayments

- The treasury rates in the USA have also fallen, leading to conclusions that there is a possibility of an increase in refinance activities

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Fears over the spread of the coronavirus have led to a surge in the refinancing of mortgages, Briefly.co.za has learned.

Mortgages refinances increased by 26% as people tried to take advantage of the falling interest rates.

Interest rates have suffered a downturn as a result of the spread of the coronavirus.

READ ALSO: Coronavirus conundrum: Scientists puzzled by few cases in Africa

The rate on a 30-year fixed-rate mortgage has fallen to the lowest point in over seven years as the coronavirus sparks uncertainty and anxiety in global economic markets.

A further reduction in Treasury rates has led market analysts to conclude that there is a possibility of an increase in refinancing activities.

The Mortgage Bankers Association (MBA) said the 26% increase in refinance applications was 224% higher than a year ago.

The MBA indicated that the application for mortgages also increased by 15.1% a week ago.

It has been determined that the increase in applications for borrowing and refinancing comes at a time when the average rate on the popular 30-year fixed mortgage dropped below 3.23%, which is the lowest in eight years.

READ ALSO: World Health Organization warns of spread of coronavirus via banknotes

Meanwhile, A PhD student who is completing his residency studies in China has released a music video which aims to educate the general public about the coronavirus and how to beat it.

The video was recorded in Chinese, which is just one of 5 languages spoken by Dr Percy Akuetteh.

The rap video has reportedly been well-received by Chinese locals as it makes them feel like the world cares about their fight for survival.

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Source: Briefly.co.za

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