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Coronavirus fears cause mortgage rates to drop

Homeowners are refinancing and taking advantage
Posted at 6:22 PM, Mar 04, 2020
and last updated 2020-03-04 21:30:07-05

Financial experts in Lafayette want to educate homeowners in Acadiana on the opportunities that are opening because of the coronavirus scare and the impact it's having on the stock market.

According to Assurance Financial in Lafayette, many investors have decided to take their money out of stocks and place it into bonds.

"When they moved their money into bonds, the bond market is what affects mortgage rates. So, when more money flows into the bond market rates go down," said Branch Manager Tracey Lassere.

Lassere has been in the business for 16 years and says she's personally never witnessed numbers drop this low.

"The ten-year bond dropped below one percent, which is crazy. I haven't seen this happen since I've been in the business," said Lassere.

The opportunity to refinance for homeowners is a big factor, but it could also be beneficial to those looking to buy their first ever home.

"So, maybe you were looking at a $150,000 home last year, and this year you can afford a $175,000 house. It puts you in a whole other bracket," added Lassere.

Assurance Financial recommends any homeowners, or those interested in purchasing a new home, to call your local loan office and see how much you could potentially can save.