Fears, facts and financial news are all rampant as we poise on the verge of a possible pandemic due to COVID-19. Palm State Mortgage would be remiss if we did not report on these global developments.
We have never kept our heads in the sand like proverbial ostriches. We keep a heads-up awareness of all things financial both in Florida and in the world. So let’s take a peek at all three of these factors.
The COVID-19 Virus: Facing the Fears and the Facts
Like a villainous plague out of a science movie, the COVID-19 virus has descended upon the planet. As of today, March 1, 2020, the US has confirmed 73 cases of COVID-19 virus. Sadly we have now lost two US lives to the disease. And now we believe that COVID-19 could have been in the state for 6 weeks with hundreds of exposures. Such are the facts that have put daily life under a joyless cloud of fear.
A Short History of the COVID-19 Virus.
- The CDC, Centers for Disease Control and Prevention, announced that it will likely expand coronavirus tests in the coming days.
- That development will likely uncover more U.S. Covid-19 cases.
- As of this Sunday evening, 88,000 people in the world have contracted the virus.
- Additionally, there have now been 3,000 deaths.
New Fears Rising from This Weekend’s Facts
If you have been following the virus story, you know that new cases have been reported with almost every newscast.
- A total of 60 countries are now reporting at least one infection.
- The vast majority of them are now outside of China.
- For example, there are 3,700 cases in South Korea.
- Likewise, Italy has reported nearly 1,700 Covid-19 cases.
- Iran has currently has announced about 1,000 infections. However, coronavirus cases and deaths may be under-reported in Iran.
Now in addition to breeding infection, we know that this virus breeds fears–financial as well as medical.
Differentiating Fears from Facts
Those are the facts as we know them. There has been much finger-pointing and political hype in connection with COVID-19. However, those are the unquestionable statistics.
CDC Authorities have appealed to logic and good sense in face of some of the fear-mongering and panic that has flooded the airways.
Over and over again, we have heard that our first defense against the coronavirus is the strong observance of basic public health habits.
For example, the number one precaution against viruses of any kind is the washing of hands. (Did you know that in addition to hot water and antiseptic soap, preventative handwashing requires 20 seconds of time?)
And again, we say, “Those are the facts as we know them.”
Flight or Fight: Facts about Your Fears
Could we be living in the beginnings of a plague, or is COVID-19 a just another type of disease, comparable to the flu? And not only do we have the disease to fear, but also the recent turbulent stock market exchange.
“To be certain, the week-long sell-off has laid waste to stocks in virtually all sectors, forcing the S&P 500 (^GSPC) into its fastest ever 10% correction and shaving some $5 trillion off the market’s value.”
In fact, a fearsome update places that $5 trillion amount at more like $8 trillion.
Facing a new Disease: Fears, Facts, and Finances
Thus, we have growing fears of financial as well as health situations as we face a new disease. And fears on a psychological level can also be like diseases, very strong and very contagious. Elizabeth Phelps, Harvard University professor of human neuroscience, stated, “Humans often can develop a robust and pathological fear of things that might not happen, to create realities that don’t exist” And she added, “So yes, of course, you can overdo it.”
In the Midst of Fears and Facts: What’s a Mortgage Seeker to Do?
On the one hand, in the midst of the rising fear of viral infection and the growing grim financial statistics, it is only human to question investing at this time, even in a home. On the other hand, Palm State is pleased to tell buyers and that “mortgage rates are hitting multi-year lows as investors, fearful of a possible coronavirus pandemic, have flocked to safe havens like Treasuries, sending the 10-year Treasury note to a record-low yield.”
- A surprising reality in this regard is that some of our previously hesitant homebuyers have actually come to life and decided to act quickly on completing their home loan.
- What do they know that you might not realize?
- Their reason is deceptively complex yet simple. Read on and discover it hidden in the financial details of our headlines.
Fears, Facts, and Finances: The Low Inventory of Houses
They know we are enduring a low inventory of houses. More than fear of the virus or fear of the low stock market performance, they fear they will lose the opportunity to find a house. Likewise, they also understand that the homebuilding industry might suffer from a constraint on the supply of construction materials from China. Thus, it is true that we might see fewer houses built over the next year.
However, there are other considerations. Some of these were covered in our blog from Feb. 20, 2020.
Once you understand your own personal fears, facts, and finances, only you can decide if this is a good time for you to become a homeowner.
Palm State Mortgage has never attempted to pressure you into such a crucial life choice. We can only give you the facts. As we said at the beginning of this article, we are not like ostriches, hiding from current fears. Instead, we have eagle eyes, looking out for our clients and their finances. We’re here to help.