The Corona Virus And Interest Rates

Interest Rates are Down

The interest rates have gone down. According to a lender I spoke with yesterday, the Corona virus and the potential impact on the economy may be at least one reason for the downward movement. The virus is a concern. A big concern. It’s important for people to get the facts and to take appropriate steps to protect themselves and their families. The most important advice I’ve read to date is to keep your hands away from your face and to wash them frequently. I don’t know much about the virus, but I do know that anything that impacts the global economy, impacts interest rates, either positively or negatively. In this case, rates are down and our market is feeling the impact.

Market Not Slowing

Just this past weekend, I heard that a house on the Windward side in the $800k range received 20 offers! Who said the market is slowing? Another agent in my office has been trying to secure a home for a buyer on the West side. His client put in an offer on a home in Ewa and competed with nine other buyers. We are seeing homes that are priced-competitively fly off the market. Especially for single-family homes priced below $1 mil on Oahu. Of course, all real estate is local. Not every property is attracting offers. Price is the magnet and there are lots of variables that come into play — location, condition, and of course, affordability. The good news is that with lower interest rates, Buyers can afford more house. So again, if you are on the fence, now might be a good time to jump in.

I’m not going to quote rates, because that is your lender’s job. Besides, they vary based on your credit scores, down payment, and a myriad of other factors. Let your lender guide you, but just know that rates won’t stay low forever.

Whether you are looking to buy or refinance, now’s a great time. And, if you are thinking of listing your home for sale, demand is strong and inventory is down. It’s a great time to both buy and sell. Just be sure to get the guidance of a good Realtor and loan officer. Oh, and don’t forget to wash your hands.