The Federal Reserve unanimously decided to hold off on interest rate hikes for the rest of 2019. The benchmark federal funds rate target range will remain between 2.25% – 2.50%. This represents a significant deviation from the committee’s previous projection of two or three rate increases this year.
The decision to hold rates steady came alongside reduced expectations for the U.S. economy. A potential slowing of GDP growth and bump in the unemployment rate are likely contributing factors to the committee’s decision. This is great news for mortgage rates, as the 10-year US Treasury yield dips to its lowest point in about a year.Rates appear to be stabilizing somewhat, and everyone should be clamoring to take advantage. Favorable rates means homebuyers can qualify more easily with more purchasing power. This year is shaping up to have incredible potential for the U.S. housing market.
Information provided by: Homeowners Financial Group USA, LLC