After three years of consistent, persistent, unrelenting and depressing interest rate increases, the market seems to have reversed itself. Since November of last year, the Fannie Mae 30 year fixed loan rate has decreased by more than .5%. What was being quoted at 4.54% in November, is being quoted at 3.875% as of this writing. It seems that the federal reserve open market committee has decided to exercise “patience” with regard to increasing rates in the near term. This, in combination with moderating GDP has caused the credit markets to turn bullish, and have been bidding rates down, even though the Fed is standing pat. Who woulda thunk it? All of the experts were predicting interest rate increases throughout 2019 and into the foreseeable future.
How long will this last? Nobody knows. If economic growth heats up again, this is likely to be a very temporary improvement. If trade talks with China stall, the decline may persist. If the economy shows signs of softening, falling interest rates will almost surely continue to decline.
What does this mean for you? It means check your interest rate compared to the current market. It means pull the trigger if you are considering the purchase of a 2nd home or investment property, downsizing, upsizing or same sizing. It means that you may be sitting squarely in that window of opportunity that we look for but never seem to see until it is behind us.
Not sure whether a change makes sense? Call Primex at 301 468-5600. We’ll be happy to give you our two cents. You’ll always get our best advice and your call is always welcome at Primex.