This BLOG On Federal Reserve Interest Rates Unchanged For 1st Quarter 2019 Was Published On January 2019
News that the Federal Reserve Interest Rates Unchanged for first quarter 2019 just hit the news wire.
- The news that Federal Reserve Interest Rates Unchanged for 1st quarter 2019 by Chairman Jerome Powell is great news for home buyers
- Due to the great economic numbers and low unemployment rate, interest rates has been going up all last year
- Industry experts and economists predicted that interest rates were headed up in 2019
- Mortgage Rates has been the highest since 2008
- Par mortgage rates is hovering around 5% today
- Back in 2013, mortgage rates were as low as 3.25% on a 30 year fixed rate mortgage
- Despite the high mortgage rates, the housing market is on fire with no sign of cooling off and/or market correction
- FHFA increased conforming loan limits for three years in a row due to escalating home prices
- HUD followed FHFA and increased FHA Loan Limits for three years in a row
- Federal Reserve Interest Rates Unchanged for 1st quarter 2019 should give home buyers a breather in buying a home
- Home buyers should not be stressed in getting home under contract sooner than later due to interest rate hikes
Many pre-approved borrowers are looking for homes but are encountering shortage of home inventory.
Federal Reserve Interest Rates Unchanged Decision Was Unanimous By Board Members
Fed Chairman Jerome Powell and board members voted unanimously to keep interest rates unchanged for first quarter 2019. This means that cost of borrowing will remain unchanged. The benchmark interest rate will remain at around 2.25% to 2.5%. Board Members agreed that inflation was at around 2.0%. They all agreed that the nation’s labor force remained solid and continued to grow. The news Federal Reserve Interest Rates Unchanged for first quarter 2019 is great news for The Trump Administration. President Trump showed concerned in recent weeks about the Federal Reserve Board increasing interest rates, thus thumping his economic growth and great numbers since he took office.
Federal Reserve Board Chairman Jerome Powell addressed policy followers today. He spoke on topics on the FED’s approach on the actions they take on interest rate hikes. It gives the public more understanding on how the central bank works. Powell feels that it is very important to address the media so they can relay the understanding on how the central bank operates. Therefore, there are no big surprises.
Economy And Markets Volatile Due To High Rate Increases In 2018
2018 was a great year for economic news and numbers. However, it was a very bad year for interest rates. Interest rates were increasing without fail every quarter by 0.025%. Nobody knows what 2019 will bring. Many economists feel that the rate hikes this year will not be as severe as last year’s hikes. Those with debts are advised to take advantage of the halt in rate hikes in order to get themselves ahead. Top experts advice borrowers to operate under the assumption that rates will continue to rise. Take advantage of this great news to pay down debts. Adjustable Rate borrowers should consider refinancing into fixed rate mortgages. Take advantage of offers of 0.0% balance transfers to hedge against rising interest rates. Gustan Cho Associates Mortgage News will keep our viewers updated on more mortgage and real estate news.
January 30, 2019 - 2 min read