Why are rates dropping?
What is causing rates to drop so low right now? Believe it or not, a lot of this can be attributed to the Coronavirus. We don’t ever wish for disasters, war, or pandemics but these types of events often move markets. The Coronavirus is a real scare but the silver lining is that rates have dropped to historic lows. These events create uncertainty that sways many investors from the stock market and moves them into the bond market. And the bond market drives interest rates. With the 10 Year Treasury hovering just above 1.5%, this is the lowest level we have seen since Brexit in 2016. Brexit was another major economic event that dropped rates fast. But almost just as fast, as soon as stability was regained, rates went up. What does that mean right now? You have to act fast. Refi your loan today to take advantage of these low rates while you can.
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