Shelter Six:  Many Now Projecting Fewer Rate Hikes in 2019

1. As expected, the Fed did not increase short-term rates last week. Not expected, however, were comments from Fed members that point to fewer Fed rate hikes in 2019.

2. The Fed is now also considering selling fewer Treasuries and mortgage-back securities than previously indicated, which would go a long way in helping keep mortgage rates low.

3. Friday’s Employment figures were very strong once again with 304K jobs added in January.  What seemed like a stellar report, however, turned out to be a bit of an illusion.

4. The Employment figures were skewed due to distortions from the government shutdown and unusual weather. The report was solid but not quite as strong as it first appeared.

5. The government shutdown, which lasted from December 22 to January 25, continues to cause delays in the release of some key economic data.

6. The economic reports are produced by government agencies, which continue to play catch up and release the data as they are able.

Rate Update

Mortgage rates fell slightly last week mostly on the heels of a Federal Reserve meeting that implied there will be fewer Fed rate hikes in the future than anticipated.

This Week

The ISM National Services Index is due out on Tuesday. As government agencies continue to catch up, there may be other unplanned economic reports released during the week, too.

February 4, 2019 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

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