Everything you need to know to stay proactive in the market.
The unprecedented outbreak of coronavirus (COVID-19) has stimulated a massive federal response. For the second time this month, the federal reserve slashed interest rates to 0% to 0.25% in hopes of easing some of the effects of the economic crisis on homeowners and buyers.
On Sunday, March 15, the Fed released a statement regarding the second round of cuts: “The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States.” The Fed additionally addressed the relief being provided to both lenders and consumers.
What you need to know:
- The Fed Fund Rate directly affects short-term loans, such as auto loans, credit cards, and home-equity lines of credit.
- This does not mean lower mortgage rates. Mortgage rates are directly affected by outstanding economic events such as inflation, expected economic growth, or in our case, an unplanned crisis like the virus.
- The Fed announced a $700 billion+ quantitative easing package to help assuage the economic havoc wreaked by the virus. Quantitative easing is employed by central banks to encourage both lending and investment.
- Long story short? This week’s rates could be the best yet.
Monarch Title is committed to bringing our community the most up-to-date and relevant information regarding our industry. Please reach out at any time with further questions or concerns.