A considerable amount of uncertainty around the Federal Reserve is now present, due to a slowdown in the national economy within the last two quarters, this has forced the government to raise its benchmark rate just last week. While it is known that the Fed does not handle mortgage rates, we can assure that their final rulings tend to shape them strongly.
Now we are seeing a substantial pullback in mortgage rates, a direct result of the increased volatility throughout the financial sector. Another critical factor in the equation is losses in stock markets, with special emphasis in oil prices and other commodities, that combined with quieter Christmas times, deliver home sales data that is pretty interesting for homebuyers and specialists in the field.
- The 15-year fixed-rate had an average 0.4 point, with a stable 4.07 percent.
- On the other hand, the five-year adjustable rate dropped to 3.98 percent.
- The 30-year fixed-rate retreated at 4.62 percent.
- In the last month, the 30-year fixed-rate had a decrease of 32 basis points.
- The market composite index decreased by 5.8 percent in a week.
- While the refinance index came down 2 percent and the purchase index slipped 7 percent.
While the overall economy remains healthy, many advisors believe that the rates will come down, and since the Fed has shown their clear intentions of not being predatory with rate hikes in the coming year, they also reduced their expectations in regards to the inflation, “good news” for mortgage rates according to several financial analysts we consulted.
Finding the most favorable mortgage rate has never been so important, the recent US tax arrangement not only opens fresh possibilities but also new challenges, making houses 4 percent cheaper and at the same time disappearing a lot of tax deductions that once favored homeowners. In that scenario, you’ll need to go out and compare what’s best, professional help can be essential on these issues.