Peak home buying season is about to kick off, and we’ve got some good news: mortgage rates remain low, and are looking to keep steady for the time being. That means if you take advantage and strike while the iron’s hot, you could get a great deal on your mortgage.
As always, we’ve been keeping on top of every market fluctuation so you don’t have to. Here’s what you need to know:
Throughout most of 2018, the economy showed signs of steady growth. This caused the Federal Reserve to raise their benchmark rates four times, dramatically increasing mortgage rates for homebuyers. Towards the end of the year, economic growth started showing signs of slowing down, and recession fears started to spread amongst market-watchers. As a result, mortgage rates took a small dip, but most experts still predicted they’d hold relatively steady in 2019.
So far in 2019:
So far in 2019, the Federal Reserve has taken a softer tone on signaling further interest rate hikes. Usually the Fed looks at the publicly available data. They tend not to go by future predictions, company earnings reports or stock market performance. By the looks of things, either they are indeed looking at those metrics now, or they’re looking at some data or analysis predicting an economic slowdown in 2020 and beyond.
Market benchmark rates and mortgage rates have continued to be at or around levels we saw at the close of 2018.
The U.S. economy remains relatively healthy. Data released after the government shutdown ended showed strong service sector growth as well as moderate housing growth. Manufacturing slowed down a bit, possibly because of trade tensions and a moderation in job creation. What does this mean? If a U.S. recession is coming, it’s certainly not here yet. If anything, it’s likely to come in 2020 and beyond. But the Fed (perhaps looking beyond the U.S. economy) is taking a restrained approach to rate hikes.
We expect that mortgage rates will remain relatively steady for the time being. The Fed does not seem to be signaling a rate hike anytime soon.
One caveat: Just because things appear normal in the U.S. doesn’t mean all is well with the rest of the world. In fact, that’s where the Fed might be looking. Global growth is slowing down markedly. We’re reaching the culmination of the economic expansion cycle we have been in for the last 10 years. Slowdown is the natural result: Canada, the European Union, Central America and China are all noticeably slowing down. So, we’ll be keeping an eye on the global economy.
What This Means For You
Mortgage rates remain low. Time to find that dream home! Rates may go up moderately later in 2019, so now is the time to take advantage and score a great deal on your mortgage. Market conditions are especially strong for those who are ready to upgrade. Is that you? Check out our step-by-step guide on upgrading from your starter home to your dream home.
At Eave, we look closely at several economic data sets daily. Of course, we’re tuned into the Federal Reserve. But we look at other data points too. One thing we’re always tracking is growth and decline in the housing sector. This includes how many new homes are being built, and how many existing homes are selling. We also look at general factors driving economic growth, like the behavior of individual consumers, industries and production, and small business, amongst others. Over time, it becomes easier for us to analyze patterns and trends that influence the economy.
In a Nutshell
Mortgage interest rates are low and should remain steady for the time being. The Fed seems unlikely to hike market and mortgage rates in the too near future.
At Eave, we benchmark our rates daily, so you get the best possible deal on your mortgage. Check out our real-time mortgage rates here.