Rates had an incredibly volatile week again. Last Thursday, rates hit lows not see since early 2018 and then managed to give it all back on Friday. Net effect, rates were relatively flat week over week, but exceptionally volatile.
So what happened? The greatest factor driving rates lower is a slowing global economy. However, the greatest factor driving rates back up is far stronger employment numbers domestically. The employment numbers seem to justify the Fed’s December decision to raise interest rates. These factors will likely keep volatility higher in the near term.
The Fed spoke again on Friday and the meeting minutes from the Fed’s December meeting are coming out this week as well. As expected, our usually hawkish Fed Chairman Powell is becoming more dovish and we feel it is highly unlikely that we see another rate hike before the summer if at all in 2019. We will keep you posted as conditions change.
Mountain State Financial Group was able to lock in several mortgage loans at the absolute lowest rates since early 2018 last Thursday. Be sure you are working with a mortgage professional who understands the markets.
As always, If you have any specific questions or scenarios you would like to discuss, I am always happy to help.