Economy shows home loan rates hit one-year lows!
The Federal Reserve, who is the authority over the control of the money supply for the United States, meets multiple times throughout the year to discuss monetary policy and the economy. They discuss ways to maintain inflation changes and maximize employment.
The most recent meeting the Federal Reserve held was on Wednesday, March 20, 2019. In this meeting it was expected that the Federal Funds Rate would remain unchanged at 2.5%. Along with this their outlook on the economy and their interest rate forecast was given in the issuance of their Monetary Policy Statement.
Their statement was definitely stimulative to the economy. As a nice surprise was forecasted for the financial markets that it would be a slower US growth and inflation which ran below their target numbers. This leads them to forecasting that there will be no more rate hikes for the rest of 2019.
With these forecasts it continues to push Stocks and long-term Bonds higher. With this push it assists to bring home loan rates to one-year lows.
Thanks to a solid economy, low rates, a positive monetary increase due to the rise in Stocks, and the Federal Reserve forecasting no more rate hikes anytime soon this shows that the spring housing market could be one of the best in years.
Source: Carrington Wholesale