Mortgage Rate Stabilizes, Probability of a Rate Decrease

Photo courtesy of SocketSite

The mortgage interest rates actually dropped to a 9-month low at 4.45% a couple of weeks ago, as reported by local real estate news site, SocketSite:

“At the same time, the average rate for a 15-year fixed mortgage has been holding around 3.88 percent, which is down 48 basis points since mid-November but 26 basis points above its mark at the same time last year, while the average rate for a 5-year adjustable has inched up to 3.90 percent, which is 38 basis points above its mark at the same time last year and represents a slight inversion with the 15-year rate.”

 

Image result for interest rate fed 2019

Photo: CNBC.com

 

According to Freddie Mac’s latest Mortgage Market Survey data:

“The mortgage rate had hit a 7-year high of 4.94 percent this past November, but it has been holding at 4.45 percent since, which is 30 basis points above its mark at the same time last year.”

 

 

Photo of a cyclist passing the Federal Reserve building in Washington, DC, U.S., courtesy of REUTERS/Chris Wattie

 

And while the Fed has said to expect for two more rate hikes in 2019, “to a range of 2.75 percent 3 percent,” according to Reuters, traders are still wagering against any more rate hikes over the next few months, with the probability of a hike holding at under 20 percent.

 

Source: SocketSite, Reuters, CNBC

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