Global events affect the market and shift local behaviors. Due to the COVID-19 outbreak and the quick seriousness that has come to the United States, the Fed made an emergency cut and is expected to make a second cut of 50 basis points when they meet on March 18th.
The indicators for mortgage rates, like the 10 year Treasury Yield had a dramatic drop, which caused rates to take a cue on moving as well. The 30-year fixed-rate saw an 8-year low falling 16 basis points. They rose a week later even though they should have dropped even more.
The stock market had up to a 30 percent slump and investors are holding tight. Overall the economy is good, but the urgency with coronavirus fears has created a major impact in the mortgage world. The housing market will see short-term effects, as buying sentiment is hesitant. In the long-term view, this could create a boost in affordability and demand.