Real EstateMortgage

Mortgage catch-22: Interest rates are lower than ever, but millions of borrowers can’t get a loan

Brutal combination of factors is leaving borrowers behind

Despite the fact that mortgage rates have been at or near record lows for more than a month, millions of potential borrowers are facing a situation where it’s simultaneously never been a better time to buy a home and never been harder to get a mortgage; a true mortgage catch-22.

Ironically, the cause of both the record low interest rates and certain borrowers’ powerlessness to take advantage of those rates is the same thing: the coronavirus.

Even as the impact of COVID-19 has driven mortgage rates down, the virus has also crippled the U.S. economy, sent unemployment skyrocketing, and altered the mortgage lending landscape so deeply that it may take years to recover.

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