Fidelity Home Mortgage LLC
  • Home
  • About Us
  • Apply Online
  • Mortgage Calculator(S)
  • Real Estate Central
    • Check Home Values
    • Appraisals
    • Washington Real Estate
    • Washington Down Payment Assistance
    • Washington Home Owner Assistance
    • Colorado Real Estate
    • Colorado Down Payment/Home Owner Assistance
    • Mortgage News Updates
    • Find a Realtor >
      • HomeLight Will Find the Best Agent for you
      • Find Your Own Realtor
      • Buyers Agents Work Free of Charge
      • How Real Estate Agents are Paid
      • 8 Things Real Estate Agents do for You
      • Never Buyer or Sell a Home Without a Realtor
    • Forbearance Info
  • Contact US
Toll-Free 888-684-0885

Fed Takes Action

11/4/2019

0 Comments

 
Picture
NOVEMBER 4, 2019 JORDAN REED ANNOUNCEMENTS, ARTICLES, BULLETINS, BULLETINS
Last Week in Review: Fed Takes Action


This past week the Federal Reserve cut the Fed Funds Rate for the third time this year, by .25%. Along with the rate cut, the Fed released a statement that suggested a “pause” in further cuts, but stated they will be ready to act again should “slowing global conditions” continue or if inflation declines further.
Speaking of inflation, it is important to remind ourselves that the Fed rate cut does not affect home loan rates. Home loan rates are slightly higher than they were right before the Fed started cutting rates in July. The main driver of long-term rates is inflation. If inflation goes up, long-term rates go up. The opposite is also true.
With that said, here’s an important quote from Fed Chairman Jerome Powell yesterday: “I think we would need to see a really significant move up in inflation that’s persistent before we would consider raising rates to address inflation concerns.” This means that the Fed is not likely to hike rates anytime soon, and long-term rates should not go too high too soon either because there is no threat of high inflation at this time.
Bottom line: home loan rates are near three-year lows and this week’s modest price improvement can be quickly erased should good news regarding U.S./China emerge.
Tagged Market Trends

0 Comments



Leave a Reply.

Fidelity Home Mortgage LLC
​Licensed Mortgage Broker in Washington & Colorado
Headquarters: 1220 Main Street, Suite 400, Vancouver, WA 98660
Seattle Washington/Keller Williams Office: 1307 N 45th ST, Suite 300, Seattle, WA 98103
Colorado Office: 7887 East Belleview AVE, Suite 1100, Denver, CO, 80111
Toll Free: 888-684-0885
Washington Fax: 360-255-5808 | Colorado Fax: 303-625-6999
NMLS #1806178

http://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1806178