Last Week in Review: Why home loan rates will stay low
The Fed met this past week. As expected, they didn’t hike rates and the Fed Statement was very dovish, suggesting that rate hikes will be off the table for most, if not all, of 2019.
The Fed looked to muted inflation and slowing economies abroad as reasons to show patience in hiking rates further.
In response, home loan rates revisited the best levels of 2019 this past week.
This new position by the Fed is a complete departure from where they were just a few months ago, when Fed Chair Powell was forecasting 3 rate hikes this year.
People owning Stocks are feeling wealthier as shares hit a multi-month high this week after rallying 14% since Christmas. This is good for housing.
Job creations and wage growth are also fundamental to a healthy housing market and last week’s terrific Jobs Report showed steady growth in both.
More good news — the Mortgage Bankers Association just released a forecast suggesting that 30-year mortgage rates will remain below 5.00% through 2020!!!