January Mortgage Rates & Updates
Despite the partial government shutdown, the IRS had been processing lender requests to verify mortgage applicants’ incomes all month.
The national average 30-year fixed mortgage rate dropped significantly in Freddie Mac’s Primary Mortgage Market Survey. According to Freddie Mac’s chief economist, “Mortgage rates fell to their lowest level in nine months.” He also noted, “combined with continued income growth and lower energy prices… should lead to a firming of home sales.” That being said, weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and higher loan rates.
According to the latest Mortgage Monitor about 2.43 million borrowers can now qualify to reduce their rates by refinancing.
The latest Consumer Price Index pegged inflation under the Fed’s 2% target and the growth in the important services sector keeps growing which is good news… so no need to heat up rates or cool down prices.
Home building… retail sales may be delayed… manufacturing grows. Housing Starts and Building Permits could be delayed by the partial government shutdown and at this time there are no forecasts.
There’s been talk from the Fed that has Wall Street convinced that there will not be another rate hike this year… Let’s hope that prediction is true! Mortgage rates can be extremely volatile, so check with your mortgage professional for the most current rates.