His change in tone follows four rate hikes last year. The Fed’s benchmark rate is not directly tied to mortgage rates but does often influence them.
Since the Fed has indicated a more cautious tone about the future of rate hikes, mortgage financing giant Freddie Mac has revised its mortgage rate forecasts to a lower average for 2019.
After climbing for several months, the 30-year fixed-rate mortgage rates began to let up at the end of the year, averaging 4.6 percent in 2018 and falling to a nine-month low of 4.45 percent in early January.
Freddie Mac predicts that 30-year fixed-rate mortgages will now average 4.7 percent this year and 4.9 percent in 2020. Freddie Mac’s Economic Research Group says in its January forecast that it expects the moderation in mortgage rates to offer some relief to the previously strained housing market. “Home buyers are very sensitive to changing interest rates and will likely respond positively if mortgage rates remain below 5 percent,” says Sam Khater, Freddie Mac’s chief economist.
The Fed’s rate hike in December was its ninth quarter-point increase in the past three years since the Fed began to gradually raise rates from record lows in December 2014. After Wednesday’s meeting, the Fed will keep its key short-term rate in a range of 2.25 percent to 2.5 percent.
Completing a Loan Pre-Qualification you'll be on your way to locking in your interest rate and giving assurance to prospective sellers that you mean business. Pre-qualification is easy and can be done via email or over the phone and speak to George Andersen at 801 550-1382.
“In light of global economic and financial developments and muted inflation pressures, the committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate,” a statement from the Federal Reserve read. The Fed said that economic activity has been “rising at a solid rate” and it does expect continued growth.
Looking for more information on buying a home? Head over to Precision Realty & Associates and speak to Carriene Porter a real estate professional where you’re guaranteed to get the expertise and advice you need. If you prefer a more personal touch, CALL 801-809-9866 today.


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