If you are interested in purchasing a home you should be getting ready to make a move on property. After a month of mortgage rates being stuck in a very narrow range, they are poised for a break out and indicators hint that it would be a break lower. Rates are already remarkably low, but we could see rates edge lower. As other countries yields’ move lower, that draws more money into our interest rate markets, which in turn is a catalyst for lower rates. To have incredibly low mortgage rates, stabilized home prices, and a stock market that continues to rise certainly puts us in a sweet spot economically. The Fed Reserve said at their last meeting that they will do what is needed to keep the economic expansion going in light of low inflation. This is a telegraph that they will probably be cutting their overnight rate by .25% at the end of July. They will also be ending their Quantitative Tightening with mortgage-backed securities in the next couple of months. This all points to a great opportunity to purchase real estate while letting your investments grow.
Rich Flanery NMLS#256117. Licensed Loan Officer, Registered Investment Advisor, Financial Planner.