By MEGHAN GLOVA
CENTRAL OREGON DAILY
Mortgage rates are at a record low.
“I’m looking at about a percent difference in the rate I have now, and what I could be going to if things work out,” said homeowner Clint Burleigh.
Burleigh bought his home just a year ago, but is already considering refinancing.
All thanks to a plummeting stock market caused by COVID-19.
The average rate on a 30-year fixed mortgage has hit a record low of 3.29%, driven down by investors shifting money into the safety of U.S. Treasurys as the coronavirus outbreak has deepened, according to a report from the Associated Press this week.
“The Coronavirus has caused tremendous uncertainty in the marketplace, and that’s why stocks are selling off as much as they are,” said Co-Founder of Bend’s Arbor Mortgage Group, Andy Zook. “And so that’s causing rates on all things to fall, as people seek security of fixed income investments.”
Zook says he hasn’t seen rates this low since the recession, and the savings show it.
“Our clients are refinancing,” he said. “They’re saving anywhere from $100 to $400, $500, $600 a month depending on their circumstances.”
Zook considers this a prime time to refinance for homeowners just like Burleigh.
“It just happened that the rates, unfortunately they’re coming down for maybe not the best reasons,” Burleigh said. “But they are coming down and it’s a time maybe consumers can take advantage of a little better financial situation.”
Burleigh says he had no intention of refinancing.
That is until the low rates were brought to his attention. Now, he’s interested to see how much he could save.
“I think being able to have a little extra money a month to either save or put towards, even put towards your principal of your mortgage to help pay it down even sooner, can be real beneficial to your long-term financial health.”