Hello Friends, here’s my market rates email list update for August 2019.

Federal Reserve Rate Cut

The Federal Reserve did cut their target rate .25% yesterday, July 31st, as anticipated. They also ended their balance sheet reduction plan two months early than they had previously indicated.

Mortgage Rates Lowest in Over 2 Years

The end result of the Fed actions is that the bond market has been doing very well the last two days and mortgage interest rates have fallen almost 1% from where they were at this time last year. We did not see the big move in the bond market yesterday, but today’s follow up is seeing both the 30-year treasury and the 10-year treasury fall to their lowest levels in more than two years. This bond yield reduction is causing mortgage rates to fall to their lowest levels in more than two years as well.

Drops May Be Short Lived

Although the Fed is working to suppress interest rates and help prevent our economy from going into a recession, these rate cuts may be short lived. The Fed cited global concerns and muted inflation for their reasoning on the cut. On forward guidance, the Fed said that they would act as appropriate to sustain the expansion. During Fed Chair Powell’s question and answer session he said “We are thinking of it as a midcycle adjustment to policy,” which the market is taking as potentially a one and done cut, and not additional cuts. He also said that this cut is different from the start of a lengthy cutting cycle. The market reacted negatively to this, but then Powell backtracked and said that the Fed is not committing to this being a one and done cut or a string of cuts.

Mortgage Loan Refinance Opportunity

Mortgage refinance applications are up more than 84% from the same time last year which means I am starting to take on a heavy volume of refinance applications. All banks and mortgage lenders are at or over capacity so finding out now if a refinance is a good option for you and getting into process will help you to capture the lowest rate when mortgage rates hit each new bottom level. This year, we experienced a bottom level in rates four times and today would be the fifth.

Get in the Refinance Que!

These rate drops tend to last for one day or even for hours on some days. I have staff on hand to handle the volume but the sooner you can reach out to me and get in the queue, the sooner I can let you know if a refinance is a good option for you.

I have been trying to be proactive with my existing client base who might be interested in this mortgage refinance opportunity, but as the rates continue to drop  I may not be able to be as proactive reaching out.

Contact Me for a Refi Consultation

Please feel free to reach out to me for a free mortgage checkup and consultation.

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