By Brian VerBurg #homebuyer #interestrates #housingmarket
Yippee!! The Fed didn’t raise rates again like they have for the past 5 quarters. The announcement was made after the Federal Reserve meeting this week. This is good news for home buyers, car buyers, and anyone looking to borrower money in the near future.
The Fed has recently been vocal about exercising patients when it comes to rate hikes and now there is little to no expectation of Fed rate movements in 2019. The Fed’s rhetoric about “patience” leads the markets to believe that the central bank is likely to allow the economy to run its course with slow rate changes ahead.
Also helping mortgage interest rates, February’s new jobs report fell considerably short of forecasts and The Trade War with China is causing some uncertainty. China has tight control of its economy and how much money Chinese investors take abroad. They are unafraid to weakening their currency and they can use the same trade levers as the US in the form of substantial tariffs. Most experts anticipate a positive resolution, but the uncertainty it has caused has been good for interest rates.
The broad economy seems to be doing well. We are currently in the second longest economic expansion in US history (following the great recession of 2008) and the net worth of US households is at record high levels. Unemployment remains low at 3.8%, and consumer sentiment is good.
If you are thinking about purchasing a home this year, please keep us in mind. For buyers in Orange County we have the OC Buyer program where we will give you a $10,000 buyer credit when you use our Team for both your Lender and Realtor. For all other areas we have unbeatable mortgage rates. Our motto is “We beat all the Big Banks and Credit Unions.” Visit us at www.GrandLendingCA.com