We didn’t provide a weekly update during the week of Thanksgiving, but true to our projections, rates dropped about an 1/8th of a percent over the last two weeks. Don’t get too comfortable though as rate improvements will be somewhat limited. We don’t see any exceptionally large moves going into the holidays but the Fed is meeting in December and we are still expecting them to increase rates. On the flip side, with inflation contained and a slowdown in European economies, the Fed may need to readdress their rate increase forecast going into 2019 which could help keep mortgage rates down as well. Make sure you are working with a mortgage professional who understands the markets!
Conforming loan limits for 2019 also came out this week! Resulting from nationally rising home prices, the new conforming loan limit for 2019 will be $484,350, up from $453,100 in 2018. This will also increase the High Balance limits in 2019, which are county specific. Colorado has several counties that will fall into the High Balance category while North Dakota and Minnesota do not. This means your clients may be able to afford more home or get better pricing on the same home in 2019!
As always, If you have any specific questions or scenarios you would like to discuss, I am always happy to help!