Now May Be a Great Time for Mortgage Loans
Due to a variety of issues that took place over the course of the past few weeks, Powell, the chairman of the Federal Reserve has decided not to raise interest rates. The chairman of the Federal Reserve has decided not to raise interest due to a variety of reasons. One of these reasons may be because of internal conflicts between Powell and Trump, the other might be because the economy might not be as strong, and one other reason may be because it is too strong and labor markets are tight. There are certainly different narratives that are present within the market right now and investors and homeowners must pay attention. Let us take a look at some of the interesting things that are happening in regard to interest rates and what that may mean for you as an investor and as a potential homebuyer.
Interest Rates and What They Mean
These are certainly interesting times and potential homeowners may want to look into the purchase of a home if they think that they will be able to afford it and have a strong balance sheet to withstand other issues within the marketplace. Some Home mortgage loans fort worth tx and other places will certainly see possible spikes in interest for the purchase of homes.
The effective federal funds rate is currently sitting at 2.40, the rate rose from near zero over the past couple of years with the increase of the economy. But we may be at a standstill in the rates as the decision makers make certain that the economy is strong and will be able to handle more interest rate increases. As such, interest rates on 30-year, fixed rate mortgage loans decreased over the prior week and is likely to continue to stay at this new level for a few more months or even further than that if economic concerns are present. This may be the case as global growth across the board may be coming to a halt.
Multiple sources have confirmed that on an average basis, mortgage lenders offer interest rates within the following range (4.1 to 4.3). Lenders who want more business are offering loans at rates below 4.00, they might offer it for as low as 3.77.
To reiterate, the range on an average basis for a 30-year mortgage rate was around 4.5 before the Federal Reserve changed its mind and state that it would not continue its steady increase of interest rates. As such experts the world over stat that the current rates will be what homeowners can get used to over the course of the year and possibly over the next few years as well. Experts expect home sales to rise as the interest rates stabilize at this fairly low rate and lenders continue to compete and offer wonderful interest rates. Is this good news or bad news? This news may be great news for individuals that are looking to purchase a home, it may be bad news if the economy is slowing down on an aggregate basis in general for all.