Mortgage rates fell more yesterday, extending their reaction to Wednesday's Federal Reserve announcement that they will stop raising the discount rate. The Fed isn't in direct control of interest rates; the free market largely decides rates due to factors like growth, inflation, and supply/demand of bonds. That said, the Fed plays a big role in helping/hindering the natural economic currents. They adjust accordingly to try to keep the economy firing on all cylinders without inflation overheating and without big financial stability risks. THAT is why the free market pays a LOT of attention to the Fed.
Some economists thinks the Fed's pause is temporary and that higher mortgage rates are inevitable.
If you are buying or refinancing a home this week, this is really good news. World Wide Credit Corporation locked loans between 4.125% and 4.625% this week and offered some VA loans at under 4% with a discount fee. We haven't seen rates this low since the first few days of February 2018. Thus, I feel comfortable saying "Mortgage rates are at a one-year low."
Call 858777-9751, if you have questions about how this might help you.
