Throughout much of 2018 many experts were speculating, as they do each year, how mortgage rates would change heading into 2019. As we saw rates continue to slowly climb throughout 2018, it was natural that many industry professionals assumed the trend would continue into the new year. However, it doesn’t appear those predictions are holding true, at least not for the first few weeks of 2019.
In an article published by the Washington Post, author Kathy Orton states, “Stock market volatility, global trade worries and the government shutdown are pushing rates down to their lowest levels since August.”. Recently the 30 year fixed rate dropped to about 4.51. In fact, Lending Tree released a report showing about 70% of home purchasers secured a rate below 5 percent.
Some in the industry believe that rates may drop further. Many are speculating the effects the government shut down, treasury yield rates, as well as jobs report data on mortgage rates. Nevertheless, the current drop in mortgage rates coupled with slowed home price growth should entice home buyers to take action.
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