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This Federal reserve This week can slow down a steady inflation, increased unemployment and economic growth in a monetary policy To reduce the Central Bank in late spring or early summer.
Destroying the recession fear and uncertain trade policy pressure financial markets, basic question for investors, the main question of the Trump Administration, the economic stiffness and tariffs will be Affect the Fed Interest rate forecast.
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“Politics is not in a pre-established course,” said Fed said during the chairman Jerome Powell Wednesday Press Conference. “There is no need to be in a hurry to adjust our policy position and was well placed to wait for more clarity.”
Fed, maximum employment and inflation are instructed. One The slow economic usually guarantees interest rate cuts To stimulate growth, but to make the prices discount very quickly, inflation can cause fuel increase with price increase when it is still on the target.
Again, a short-term criteria for lending is the federal reserve Indirectly affect the mortgage market. In 2024, the Central Bank cut interest rates three times, but the mortgage Prices did not drop.
The reason for this is primarily for the operation in the market market in the bond market in the 10-year treasury productivity. How bond productivity and interest rates rise or fall New economic data Market assumption and risk assessment. The mortgage pace will continue to change until the impact of management policy is clearer.
Read more: How the decision of the federal reserve affects mortgage rates
What is the way for mortgage rates now?
Fannie Mae Projects Mortgage To stay above 6.5% of prices for the better part of the year. However, the lender justifies the ratios of a number of factors and no predictions are not laid. Considering the careful nature of the economy, any risk or disruption can reduce the productivity of bonds and affect the trajectory of mortgage rates.
An economic bowing bowl is likely, for example, mortgage prices may begin to reduce, but it is necessary to get buyers to get closer to 5.5% to bring it to market in the market. Alex ThomasLarge research analyst research and consultation in John.
Cheaper home loan rates are positive for apartment convenience, a vibrating economy apartment market can be frozen. “If low mortgage prices are the result of a recession, the apartment request may remain silent,” Thomas said.
Non-promising houseplacts Waiting for mortgage rates to fall Over the past few years, the mortgage market may need to change the “new normal” and rates between 5% and 7%. It may seem high in recent comparison 2% Rates of the pandemic period. However, experts are less than 3% of the mortgage are not possible without a strong economic crisis. Average ratio for a 1970s 30 years of fixed mortgage It has been around 7%.
Today’s Unemployed housing market Not only the result of mortgage rates. One Lack of housing that stands longLoss of expensive purchases due to expensive home prices and inflation closed buyers in the last few years.
Tips for today’s house builder
With Spring home life season Fast approaching, promising home appliance thinks that you have to continue to wait outside. Never a good idea to hurry Get home without setting up a precise budget.
Experts recommend before getting home:
💰 Set up your credit score. Your credit score will help you determine whether your mortgage and which interest rate is. One Credit account It will help matching the lower price of 740 or higher.
💰 Save for a larger payment. Bigger Payment Allows you to take a small mortgage and get a lower interest rate than lender. If you can afford, at least 20% of the lower payment will also eliminate private mortgage insurance.
💰 Shop for mortgage lenders. To compare credit offers from multiple mortgage lenders can help you Negotiate with a better rate. Experts recommend at least two to three credit calculations from various loans.
💰 Review mortgage points. You can get a lower mortgage rate by purchase Mortgage pointswith each point with 1% of the total loan amount. A mortgage point is equal to 0.25% decrease in your mortgage degree.
