- 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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