This Article Is About The FED To Lower Rates In 2019 Will Spike Refinancing 

News the FED To Lower Rates in 2019 lower mortgage rates at a 24 month low.

• However, rates had a sudden spike last week due to President Trump’s threat in implementing tariffs
• Mortgage rates on a 30 year fixed rate conventional loans averaged 4.20% last week for prime borrowers
• It was the biggest jump in mortgage rates nationwide in a single one week period since January 1st, 2019
• Mortgage rates on FHA, VA, and USDA loans also rose 0.125% on the average nationwide
• Low mortgage rates fluctuate not just on a weekly basis but several times each day
• Mortgage lenders often have reprices on their pricing engines several times each day
• This week can be a volatile market for mortgage rates as well depending on how volatile the stock market is

In this blog, we will discuss the benefits of The FED To Lower Rates for homeowners who closed on their mortgages last year.

The FED To Lower Rates Due To Fears Of Recession

Last week’s sudden rise in mortgage rates of 11 basis points on 30 year fixed rate conventional loans averaged nationwide conventional mortgage rates. Mortgage interest rates on a 30 year fixed mortgage dropped to 4.06% today for prime borrowers.

• Reason for the sudden spike in mortgage rates was due to economic data released last week
• Mortgage experts are watching mortgage rates for this week to see the outcome of retail sales number and the strength of the U.S. dollar and the volatility in Wall Street
• President Trump’s tariff talks may also affect mortgage rates
• The Federal Reserve Board announced they may be decreasing interest rates this year which is great for low mortgage rates

15 year fixed conventional mortgage rates have dropped today as well last week by 7 basis points for a nationwide average of 3.41%%.

• Both 30-year and 15-year fixed conventional mortgage rates are par pricing for excellent credit mortgage loan borrowers, often referred to prime borrowers
• Borrowers will less than perfect credit will get price adjustments to par mortgage rates
• Excellent credit prime borrowers are borrowers with credit scores of over 740 FICO credit scores with 20% down payment on a home purchase
• These statistics are for conventional loans only and does not apply to FHA, VA, and USDA loans

However, government mortgage rates follow conventional loan mortgage rates trends.

Homeowners Refinancing Need To Lock Mortgage Rate

For homeowners who have been working on refinancing their current home loans and are in the process, they should consider locking their mortgage rates as soon as possible.

• Mortgage rates were expected to rise starting the second half of 2018 and until the second half of this year
• Despite the newsThe FED To Lower Rates, rates expected to be extremely volatile
• Even with last week’s sudden spike in mortgage rates to 4.06%, mortgage rates are still at a 24 month low
• How long with it remain at these levels, nobody has a crystal ball
• Homeowners with current mortgage rates of 5.0% or higher should definitely consult with a loan officer and consider refinancing their home loans and see if they can benefit and save money by refinancing their current home loans now

Both VA Streamline and FHA Streamline Refinances are expected to surge this year.

Back in July of 2013, millions of homeowners were in the process of refinancing their home loans and all of a sudden mortgage rates skyrocketed and many lost their chances to proceed and close on their refinance mortgage loans.  From all the signs, it seems like history is about to repeat itself. Mortgage experts expect a huge influx of refinance mortgage applications throughout 2019 and going into 2020.