Low Mortgage Rates
Federal Reserve Board Chairwoman Janet Yellen is the new Federal Reserve Board chief and all eyes are on her. Wall Street and mortgage industry leaders are monitoring every move she makes and every word she speaks. At last Federal Reserve Board meeting in mid March 2015, Federal Reserve Board Chairwoman Janet Yellen started the meeting when she spoke the words that the economy and the economic growth has moderated somewhat. After the Federal Reserve Board March 2015 meeting, mortgage rates have been volatile but overall, mortgage rates have been dropping nationally. With many talk and rumors of low mortgage rates rising in 2015, mortgage rates seem that it wants to go the other way. Even the Federal Reserve Board announced that it will be increasing interest rates this summer. Mortgage rates have been volatile since the start of 2015. Federal Reserve Board Chairwoman Janet Yellen hinted that interest rates will not rise as quickly as the Federal Reserve Board thought it would in the March 2015 Fed meeting. Chairwoman Janet Yellen said that low mortgage rates will definitely rise, however, not just yet.
Low Mortgage Rates Now And The Future
Ever since the 2008 real estate and mortgage meltdown, mortgage rates have been stable and the lowest ever in the history of the United States. Mortgage rates were volatile in times but eventually came back down. There were periods where low mortgage rates spiked up more than a point but eventually came back down. Homeowners refinanced many times during the past 7 years after the mortgage meltdown and came out ahead. Will low mortgage rates remain low ahead?
Nobody has a crystal ball but the chances are that low mortgage rates will not remain at today’s levels forever. Mortgage rates can tank to the low 3.0% this year but the chances are that interest rates will increase and go higher as time goes by. During the upward climb in mortgage rates, the chances are that there will be volatility in mortgage rates where rates can spike and mortgage rates can drop more randomly than in the past.
Federal Reserve Board And Mortgage Rates
Mortgage rates today are at an all time low. The Federal Reserve Board is on high alert in watching economic number and economic forecast extremely carefully. Yet, the Federal Reserve Board does not want to hastily increase interest rates and cause a market imbalance and major volatility. Mortgage rates have been at a historically low for the past six to seven years and the likelihood is high that mortgage rates will increase in 2015. The Federal Reserve Board has been predicting that low mortgage rates will increase over and over again in the past few years but have refrained from doing so many times. Economic data released have been up and down and not consistent. For example, week after week, we may have great numbers of lower unemployment and job creation numbers and then those numbers go to the opposite direction where it creates confusion and the Federal Reserve Board will not do anything with raising interest rates. Other numbers to watch out for are non-farm payroll data which comes out on the first Friday of every month as well as job wages. If Employee wages starts to go up quickly, the Federal Reserve Board will trigger a quick interest rate hike sooner than later. If you are in the process of refinancing, make sure you lock your mortgage rate well ahead of teh release of the jobs reports gets released.
Global Economy And Mortgage Rates
Economic news in the United States is not the only factor on which direction mortgage rates will go. International news will often affect mortgage rates in the United States. No matter whatever the Federal Reserve Board predicts on higher mortgage rates for 2015, if there is bad news internationally, mortgage rates in the United States will be affected and mortgage rates can even go further down. It will also tank the stock market.
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