U.S. President Donald Trump last week called on the Federal Reserve to drop its key interest rate to zero, or even negative, when it convenes its next meeting later this month. The call has sparked discussion among real estate experts on how zero interest rates would impact the housing market. The obvious impact is that […]
Fannie Mae: Expect 2 more interest rate cuts this year
August 23, 2019 by
Mortgage servicing giant Fannie Mae says it expects the Federal Reserve to make two more quarter-point interest rate cuts before the end of the year, most likely in September and December. If so, the cuts would likely result in lower mortgage rates for the remainder of this year, Fannie Mae officials said. Fannie Mae’s Economic […]
Consumers get more home buying power as Fed cuts interest rates
August 1, 2019 by
The U.S. Federal Reserve this week slashed interest rates for the first time since the Great Recession in 2008, but experts say the move is unlikely to improve what is already a very favorable borrowing environment for home buyers. The federal funds rate, which governs the rate banks charge each other for short-term borrowing, will […]
The Fed promises no more rate increases this year
March 22, 2019 by
The Federal Reserve says its decided to leave short term interest rates unchanged following its March meeting. It added that rates will likely not move at all for the remainder of the year, having previously raised them in five successive quarters dating back to late 2017. In fact, interest rates could possibly be lowered at […]
The Best Home-Buying Strategy, Even with Rising Mortgage Rates
February 26, 2019 by
Mortgage rates have been on the rise over the years, making it an unsustainable option for most Americans who would like to own a home. Transunion, one of the credit reporting agencies, predicts a significant rise in rates on 30-year mortgages, by as much as 5%. Another deterrent for most people looking to own homes […]
High credit scores no longer necessary for the best rates, study finds
February 11, 2019 by
Experts say that home buyers don’t necessarily need an 800+ FICO score in order to be guaranteed the best rates on their mortgage. These days, some buyers in the 700 FICO score range can also secure the most attractive rates, according to a new analysis of one million loan offers by Lending Tree that was […]
Housing demand surges earlier than expected this year
February 8, 2019 by
The spring buying season may already be upon as, with reports suggesting that demand for housing is picking up earlier than expected. Analysts say lower mortgage rates could be the reason. For example, CNBC reported the case of an open house in Coppell, Texas, a suburb of Dallas, where dozens of prospective buyers were lined […]
Don’t worry about adjustable-rate mortgages, experts say
February 6, 2019 by
Housing analysts have raised concerns that borrowers are becoming increasingly reckless when taking out so-called adjustable-rate mortgages, similar to the way they were abused in the years before the Great Recession more than a decade ago. The problem is that borrowers are asking for much higher loan amounts than they have been in recent years. […]
Federal Reserve says no to rate increases
February 1, 2019 by
This week the Federal Reserve once again voted to leave interest rates unchanged, indicating that its in no hurry to do so at all in the year ahead. Jerome Powell, chairman of the Fed, said the organization was taking a “patient” approach to rate increases, following four hikes in the interest rate last year. The […]
Feds likely to pause interest rate hikes, for now
January 17, 2019 by
After raising interest rates several times in 2018, the Federal Reserve seems likely to hold off on any further increases. During the Fed’s latest meeting this month, board members agreed not to raise the benchmark interest rate now or at its next meeting in March. Still, Federal Reserve officials did say they can expect to […]
