Mortgage Rates Could Hit A Record Low Of 3.3% By 2019’s End
This month, NAR Chief Economist Lawrence Yun announced that a 3.3% interest rate is not out of the picture for 2019. This would be a record low. “The economy is clearly weakening, and the employment conditions show a lagging indicator,” said Yun. “The soft job gains in August assures that the Federal Reserve will be cutting interest rates.”
Mortgage rates have dropped through most of 2019. According to Freddie Mac, they reached a three-year low of 3.49% in September of this year. “Mortgage rates could fall to 3.3% before the year-end,” Yun said. “But lower rates may not help with affordability because home prices are re-accelerating higher, easily above the latest wage growth….Housing inventory has recently stopped rising, putting upward pressure on home prices of moderately priced homes, but there is still a time to get the economy into a higher gear with increased home building of affordable homes and lessening trade tensions.”
Time to take advantage of these low rates!
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