Home selling season is in full swing, and all signs are pointing to this being a great time for buyers. Housing inventory is up and home prices are finally softening. Even better, those low rates we’ve been touting all year? They’re sticking around, at least for now. Buyers who take advantage of these market conditions could save thousands on their homes.

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 about mortgage rates this month:

Looking Back

So far in 2019, the Federal Reserve has been cautious about raising interest rates. Although the economy has been relatively strong, many market watchers have been warning of a recession to come. It seems this sometime-in-the-future recession is what’s giving the Fed pause. As a result, they’ve held steady on rates, and have signaled that they’re not planning on raising them anytime soon.

Meanwhile, the government shutdown earlier this year left a lot of uncertainty about the health of the economy, and whether the promised recession would come this year or in 2020.

Looking Forward

All the post-government shutdown data is in. The verdict? The economy is proving to be quite robust, with strong GDP growth. This probably means we won’t see a recession this year, but instead will see some economic slowdown in 2020. Given the health of the economy, it stands to reason that the Fed will raise rates later this year, right? Not exactly. They’re still expressing caution.

The reason: Underlying economic data is showing mixed signals. Home prices are softening across the U.S. Typically, this trickles into consumer sentiment, with Americans becoming more cautious in their spending. Further, while many industries are experiencing job growth, some (such as wholesale jobs) are experiencing layoffs. These signals may imply that the dreaded recession is imminent (albeit, a bit further off than originally anticipated). The Fed is, for now, committed to waiting to see how things play out, and holding off on any rate hikes in the meantime.

The result: For now, rates remain steady. It’s possible there will be no further Fed rate hikes this year. But there’s also a chance we could see one more hike, provided certain economic metrics continue to show good health.

What This Means For You

With home prices softening, housing inventory rising, and mortgage rates remaining low, now is a great time to buy a home. Market conditions are perfect for those looking to upgrade. And even those entering the crowded starter home market will be comforted to learn that there are 6 percent more homes on the market this year than this time last year. Many sellers (a reported 21 percent) are even offering incentives to buyers, such as paying for closing costs, providing warranty, and doing remodels. So, if you’re ready to take the next step and buy a new home, now couldn’t be a better time! Today’s low rates could save you thousands on your mortgage.

Eave’s Approach

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 rates are low, and will remain that way for the foreseeable future. The Fed has indicated that it will wait to see how certain economic data points play out before deciding to raise rates again.

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.