This BLOG On Mortgage Rates Hit 13 Month Low And FEDS Leave Rates Unchanged Was PUBLISHED On March 21st, 2019

Mortgage Rates Hit 13 Month Low at 4.25% for prime borrowers.

• This is good news for home buyers and homeowners watching rates
• Mortgage Rates hit an all-time high since the 2008 Great Recession last year
• The economy has been on fire with good news after good news
• Housing prices have gone up tremendously year after year since 2013
• Due to rising prices, the Federal Housing Finance Agency (FHFA) increased conforming loan limits for three years in a row
• HUD, the parent of FHA, followed FHFA”s lead and increased FHA Loan Limits for 3 years in a row
• Conventional Loan Limits is now at $484,350
• Substantially higher in high-cost areas
• FHA loans Limits for 2019 is $314,827 and much higher in high-cost counties
• Rising home prices coupled with rising mortgage rates have hurt home buyers due to being priced out of the market

In this blog, we will discuss how Mortgage Rates Hit 13 Month Low will impact the real estate market.

Reason Why Mortgage Rates Hit 13 Month Low

The Federal Reserve Board announced that the FED will not increase interest rates for the remaining year 2019.

• Coupled with Mortgage Rates Hit 13 Month Low may be great news for home buyers and homeowners looking to refinance, but what does this mean?
• Are we headed for another Great Recession?
• What goes up normally comes down, right?
• Home prices have gone up in most parts of the country where many were looking for a housing market correction
• Will a market correction be in the works?
• It seems like there is still more demand for homes than inventory
• Homebuilders are having record sales quarter after quarter
• Lenders are coming out with new mortgage products like non-qm, bank statement, asset-depletion mortgages
• Many are getting back to real estate investing due to the resurgence of investment property loans like fix and flip rehab loans, commercial lines of credit, and investment blanket loan programs
• Many homeowners need mortgage rates to hit a certain point in order for them to be able to refinance in order to obtain a net tangible benefits

How much lower will mortgage rates go?

What Determines Mortgage Rates?

There are many factors that determine mortgage rates. In general, good economic news means bad for interest rates. The Federal Reserve Board will increase rates when the economy does very well. Good economic data such as low unemployment rates, jobs numbers, and growth in the economy is great news that the economy is doing great. However, the FED normally increases interest rates when positive numbers keep on coming out quarter after quarter like it has been the past couple of years. After President Donald J. Trump got elected, the economy was on fire. Good news after good news. Housing numbers, job numbers, growth data were the best ever during any U.S. Presidency. The Dow Jones Industrial Average is nearing 26,000, a historical high. Due to these great numbers, the FED increased interest rate quarter after quarter. With Mortgage Rates Hit 13 Month Low and the FED not increasing interest rates for the rest of 2019, is there something we do not know? The Federal Reserve Board normally increases rates to slow inflation during a hot economy. The economy is not the only factor that affect rates. World event, such as BREXIT and the North Korean Talks can also have an impact on mortgage rates.

The economy is expected to slow in the coming months. This means that mortgage rates should continue to decline but not much. All indications suggests that we will never have mortgage rates like we had back in 2013 where rates were 3.25%.