Coronavirus scare: Falling interest rates leads to increased mortgage refinances

Coronavirus scare: Falling interest rates leads to increased mortgage refinances

- The fear of the spread of the coronavirus has led to an increase in the refinancing of mortgages

- Mortgage refinances have increased by 26% in the wake of attempts to take care of reduced interest rates

- The Treasury rates in the USA have also fallen, leading to conclusions that there is a possibility of an increase in refinance activities

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Fears over the spread of the coronavirus have led to a surge in the refinancing of mortgages, YEN.com.gh has learned.

Mortgages refinances increased by 26% as people tried to take advantage of the falling interest rates.

The interest rates have suffered a downturn as a result of the spread of the coronavirus.

READ ALSO: Scientists claim a stronger strain of coronavirus is spreading all over the world

The rate on a 30-year fixed-rate mortgage has fallen to the lowest point in over seven years as the coronavirus sparks uncertainty and anxiety.

A further reduction in Treasury rates has led market analysts to conclude that there is a possibility of an increase in refinance activities.

The Mortgage Bankers Association (MBA), per a Business Insider report, the 26% increase in refinance applications was pegged at 224% higher a year ago.

The MBA also indicated that the application for mortgages also increased by 15.1% a week ago.

It has also been determined that the increase in applications for borrowing and refinancing comes at a time when the average rate on the popular 30-year fixed mortgage dropped below 3.23%, which is the lowest in eight years.

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In other news, DSTV Ghana has released details of new prices at which they would offer their packages for sale from Wednesday, April 1, 2020.

The change in prices also affects their packages on GOTv as well, YEN.com.gh has learned. Details available show that the Access package, which was initially available for GHC40 per month, would now sell for GHC45.

Compact Plus would sell for GHC230 from GHC210 and the Premium Package would be available for GHC360 instead of GHC340.

For the GOTv packages, the Value package would sell at GHC25 instead of GHC20 and the Plus package would go for GHC45 instead of GHC40.

The Max package would go for GHC70 instead of GHC65 and the Lite Monthly package would sell at GHC15 instead of GHC10.

The Lite Quarterly package would be offered for sale at GHC35 instead of GHC25 and the Live Annual package would go for GHC80 instead of GHC60.

READ ALSO: World Health Organization says coronavirus could be spread through bank notes

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Source: Yen.com.gh

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