{"id":16637,"date":"2020-05-13T09:14:00","date_gmt":"2020-05-13T16:14:00","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=16637"},"modified":"2026-04-13T01:48:00","modified_gmt":"2026-04-13T08:48:00","slug":"buyer-coronavirus-mortgage-rates","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-coronavirus-mortgage-rates\/","title":{"rendered":"How Coronavirus Mortgage Rates Affect Buyers, Sellers, and Owners"},"content":{"rendered":"

It\u2019s all over the news, and if you\u2019re buying or selling a home, it\u2019s likely all over your social media feed, too: The coronavirus (COVID-19) pandemic has brought mortgage rates to near historic lows<\/a>.<\/p>\n

Many Americans are eager to take advantage of these low rates. In the weeks following the U.S. spread of the coronavirus, refinance applications skyrocketed<\/a> so astronomically that mortgage lenders had a hard time keeping up with the new demand.<\/p>\n

In fact, many lenders were so overwhelmed, they temporarily stopped accepting mortgage applications all together.<\/p>\n

So how do you know if now is really a good time to buy, sell, or refinance a home? We spoke to HomeLight\u2019s head of Capital Markets, John Boyles, and top Michigan real estate agent, Gary Naeyaert<\/a>, to break it all down.<\/p>\n

Here\u2019s what you need to know about the coronavirus and mortgage rates.<\/p>\n

\"A<\/a>
Source: (Kaique Rocha \/ Pexels)<\/figcaption><\/figure>\n

Mortgage rates and why they\u2019re important<\/h2>\n

\u201cA mortgage rate, also known as \u2018note rate\u2019 on a mortgage, is the interest rate that\u2019s paid by the borrower\u201d on the mortgage loan they take out from the lender, says Boyles.<\/p>\n

Put another way: Your rate is what you\u2019re paying over time to borrow money from a mortgage lender. Even when rates are low, the interest on a mortgage typically adds tens of thousands of dollars to the cost of your home over the life of the loan.<\/p>\n

So, where does your mortgage rate come from? There are three major driving forces behind the rate you\u2019re offered on any given day.<\/p>\n

1. Your financial profile<\/h3>\n

Your rate is affected by your financial profile, including your credit score, your income, your debts and assets, and how much money you\u2019ve saved up for a down payment. The higher your credit score is, and the more you\u2019ve saved up for a down payment, the lower your interest rate will be.<\/p>\n

2. The home<\/h3>\n

Your rate also factors in the type of property you plan to buy and how you\u2019ll use it.<\/p>\n

For example, investment properties and second homes can carry higher rates than primary residences. Manufactured homes can also come with higher interest rates.<\/p>\n

3. Outside factors<\/h3>\n

There are a whole host of outside factors (also known as things beyond your control) that play into mortgage rates, which can shift on a moment-to-moment basis.<\/p>\n

According to Boyles, these complex factors include:<\/p>\n