Reports of a new virus originating in Wuhan, China is strangely affecting mortgage rates.
This trend could gain momentum in February.
As January came to a close, markets were watching the spread of the virus, with new cases being discovered in the U.S. and other countries.
Mortgage rate watchers are justified in wondering how a virus could affect rates. The relationship is not exactly obvious.
Mortgage rates fall during times of economic uncertainty and lower expectations of inflation. The Wuhan coronavirus contributes to both.
Officials are limiting travel and transportation in Wuhan, which is a major trade and export hub in China. The decreased activity and mobility in one of China?s largest cities could spark a wider slowdown that could disrupt economic growth and slow inflation worldwide.
Of course, no one wants a global outbreak, but one unexpected outcome could be lower rates throughout February and perhaps beyond.
If you?ve been thinking about a home purchase or refinance, February is looking to be a great month to take action.
BBB A+
Apply online:http://visionquestlending.com/free_quote/
Tony Nguyen | NMLS#93776
Vision Quest Lending | 2860 Michelle Drive, Suite 140, Irvine, CA 92606
Direct 714-464-8042 | 877-318-0992 x6502 | Fax 866-394-9352
Email | tony@vqlending.com
Website | www.visionquestlending.com
This trend could gain momentum in February.
As January came to a close, markets were watching the spread of the virus, with new cases being discovered in the U.S. and other countries.
Mortgage rate watchers are justified in wondering how a virus could affect rates. The relationship is not exactly obvious.
Mortgage rates fall during times of economic uncertainty and lower expectations of inflation. The Wuhan coronavirus contributes to both.
Officials are limiting travel and transportation in Wuhan, which is a major trade and export hub in China. The decreased activity and mobility in one of China?s largest cities could spark a wider slowdown that could disrupt economic growth and slow inflation worldwide.
Of course, no one wants a global outbreak, but one unexpected outcome could be lower rates throughout February and perhaps beyond.
If you?ve been thinking about a home purchase or refinance, February is looking to be a great month to take action.
BBB A+
Apply online:http://visionquestlending.com/free_quote/
Tony Nguyen | NMLS#93776
Vision Quest Lending | 2860 Michelle Drive, Suite 140, Irvine, CA 92606
Direct 714-464-8042 | 877-318-0992 x6502 | Fax 866-394-9352
Email | tony@vqlending.com
Website | www.visionquestlending.com