Lower Mortgage Rates As FED Lowers Rates

Lower Mortgage Rates Due To The FED Announcing Lower Interest Rates

Gustan Cho Associates are mortgage brokers licensed in 48 states

This Article Is About Lower Mortgage Rates Due To The FED Announcing Lower Interest Rates 

Homeowners who closed their mortgage loans in 2018 should be looking forward to refinancing in 2019.

In this blog, we will discuss lower mortgage rates due to the recent FED announcements.

The Federal Open Market Committee (FOMC)The Federal Open Market Committee (FOMC)

Mortgage Rates has been steadily declining since the beginning of 2019.

  • Many experts, home buyers, sellers, and lenders thought that mortgage rates would hit all-time highs since the 2008 Great Recession
  • However, the opposite happened
  • Mortgage Rates have been dropping significantly since the beginning of the year
  • It is expected to drop further according to analysts and market experts
  • The Federal Reserve Board has been holding interest rates steady
  • But many industry experts are expecting the Fed to drop interest rates in the coming weeks

This speculation has lenders lowering rates to a 24 month low.

Massimo Ressa has a national reputation of making predictions that are spot on.

What Does This Mean For BorrowersWhat Does This Mean For Borrowers

Gustan Cho Associates

The Federal Reserve Board is expected to hold its next Fed Meeting on July 30-31st. Market industry experts are expecting that the Federal Reserve Board will be cutting interest rates between 0.25% to 0.50%.

The Federal Reserve Board does not have any control and/or influence over mortgage rates. However, the actions that the Fed takes does have a direct impact all types of interest rates which includes mortgage rates. The mortgage markets are taking the July Fed rate cut in pricing out mortgage interest rates. This is the reason why mortgage interest rates are so low.

Dale Elenteny, a senior mortgage banker and underwriter at Gustan Cho Associates issued the following statement:

  • If you’ve been waiting to lock in a mortgage, this could be the time. Because markets are forward-looking, July’s expected rate drops are “baked into” today’s rates. Mortgage rates continue downward in anticipation of big Fed moves in July.

For more information on this blog or other mortgage-related topics, please contact us at Gustan Cho Associates at 800-900-8569 or text us for faster response. Or email us at gcho@gustancho.com.

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