FED Interest Rate Freeze And How It Benefits Homeowners And Home Buyers

This BLOG On FED Interest Rate Freeze And How It Benefits Homeowners And Home Buyers Was PUBLISHED On March 24th, 2019

The news of the FED Interest Rate Freeze on March 20th, 2109 surprised many.

In this blog, we will discuss what the FED Interest Rate Freeze means to home buyers and homeowners in 2019.

Housing Prices And Mortgage Rates

Housing prices have been increasing exponentially since 2012.

  • Many areas such as Texas, Florida, Georgia, Kentucky, Ohio, Colorado, Pennsylvania, and dozens of other states have experienced massive housing growth
  • On the flipside, many home buyers in certain states like New York are leaving to other lower taxed states
  • Countless residents are fleeing New York due to rising taxes and the high cost of leaving
  • Therefore, many home buyers are leaving the state to other lower taxed states
  • Home prices have been increasing despite high mortgage rates in 2018
  • The main reason for home prices increase was due to very low inventory
  • The Federal Housing Finance Agency increased conforming loan limits for 2019 to $484,350 due to rising home prices
  • HUD, the parent of FHA, followed FHFA lead and raised FHA Loan Limits for 2019 to $314,827
  • HUD increased FHA Loan Limits for three years in a row

With news the Federal Reserve Board will not increase interest rates for the remaining of 2019, have lowered mortgage rates to a 13 month low. We anticipate mortgage rates to slide even further in the weeks and months to come. 

Who Will Benefit The Most With FED’s Freezing Rates In 2019

Home buyers will have more buying power with the lower mortgage rates to come in 2019.

  • Homeowners who purchase homes in 2018 will receive the greatest benefits
  • Mortgage interest rates in 2018 have been the highest since the aftermath of the 2008 Great Recession
  • Mortgage Rates hit a bottom back in 2013 where rates were 3.25%
  • Many home buyers who purchased home in 2018 had rates north of 5.0%
  • Lower credit score borrowers got rates as high as 5.75%
  • The refinance market has been dead for the past three years due to high mortgage rates
  • Many small mom and pop mortgage broker shops were hurting due to the freeze in the refinance market

Mortgage rates hit a 13 month low on March 21st, 2019 after the FED announced they will freeze rates for the remaining of 2019. Many industry experts and economist predict that mortgage rates will continue to slide in the coming weeks and months.

VA And FHA Refinance Mortgage Loans Expected To Become Very Popular In 2019

VA and FHA are the only two mortgage programs that offer streamline refinancing. Homeowners with VA and FHA Loans who have closed their home loans in 2018 will definitely benefit from VA and FHA Streamline Refinancing. Streamlines do not require home appraisals and/or income documentation. There is no credit score refinances and credit qualified streamlines. Borrowers who have higher credit scores will get the lowest rates on VA and FHA Streamline Refinance Mortgage Loans. Streamlines offer very limited documentation. Most streamlines can close in 21 days or less. Borrowers have no cost out of pocket. They also get to skip two months of mortgage payments on VA and FHA Streamline Refinance Mortgages.

Borrowers who need more information on mortgage rates, please contact us at Gustan Cho Associates at Loan Cabin, Inc. at 262-716-8151 or text us for faster response. Or email us at [email protected] We are available 7 day a week, evenings, weekends, and holidays.

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