With the Federal Reserve issuing “doubts” about the economy, mortgage interest rates have dropped to their lowest levels since November of 2016, according to Freddie Mac’s date, released Thursday.
After the Federal Reserve met last week and expressed their concern about issues like inflation, slowing global growth and trade wars, mortgage rates dropped quickly. While the Fed doesn’t actually set interest rates, their actions will cause them to swing.
Recent data is also proving them right.
After the release Tuesday of some very disappointing consumer confidence numbers, which was at its lowest rating in two years, treasury rates dropped, pushing mortgage rates with them. This may not last though, as many in the marketplace are hopeful that next week’s G-20 Summit could put an end to the trade war between China and the U.S., which would be a huge boost to both spending and economic activity, not only in the U.S. but worldwide. Friday’s inflation data report could also cause rates to increase if it were to show significant improvement.
With that said, the rates do almost always stay put during a holiday week, and with the Fourth of July on Thursday, most experts expect the rates to stay stable through next week.
The low rates have caused a refinance boom, with savvy homeowners taking the lower rates and refinancing their mortgages to more friendly rates, along with using the equity in their homes to take cash out and pay off credit cards or make home improvements.
Call The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515, or Nashville at (615) 810-8555. You can always apply online at hero.loan for your VA Loan, and www.thehomeloanexpert.com for your other mortgage needs, and will come to you to help close your loan. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?