The Federal Reserve met this week and despite requests from the President, they left rates alone.
This was the Fed’s third meeting this year and as they said in March, they are being patient. Last year the Fed predicted 2-3 rates hikes this year. By March, they had changed that plan and were no longer looking at any rate hikes this year. That dropped interest rates and several homeowners started refinancing their homes – rates were lower than they had been in over a year.
This week President Trump asked the Fed to lower rates via twitter. His comments were directed at the economy and that if the Fed would drop rates, we could see the economy take off even faster. The Fed didn’t bite on his comments, but left rates alone this meeting.
In the Fed’s comments after the meeting, they cited “global economic and financial developments” as reasons for no predicted rate hikes in 2019. They are watching the struggles China has had, they know that the world is all interconnected and they don’t want problems elsewhere to affect our economy.
What does this mean for us? If you are looking to buy a home, rates may be the best we have seen in the last year or so, it may be a great time to think about refinancing. With home prices increasing, those that are paying mortgage insurance may be able to refi and eliminate their mortgage insurance payment. For some that means even if the rate is slightly higher, it may lower your payment overall. It’s worth looking into! If you are looking to buy, this may mean that you can buy more home as rates may be lower than when you were qualified for a home – or at least the same.
Talk to your loan officer and see what you should do – is it time to buy or refinance? We certainly didn’t expect interest rates to drop this year, so it’s a great time to look at buying a new home!
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
