Shelter Six:  New Consensus that No More Rate Hikes Needed in 2019

Comments from Federal Reserve Members after last week’s Fed meeting surprised many as the new consensus is that no more short-term rate hikes will be needed this year.

The Fed also surprised by announcing that it will slow the pace of its bond repurchase program and end it altogether in September.

Fed officials also modestly lowered the outlook for U.S. economic growth in 2019 from 2.3% to 2.1%.

February Existing Home Sales jumped 12% from January, far more than expected.

February’s inventory of homes for sale was at a 3.5-month supply, 3% higher than a year ago but still below the 6-month healthy balance between buyers and sellers.

February’s median existing-home price was 4% higher than a year ago.

Rate Update

Big announcements from the Fed along with a lower outlook for global economic growth contributed to mortgage rates dropping sharply last week to the lowest levels in over a year.

This Week

Housing starts will be released on Tuesday, Pending Home Sales on Thursday, and both New Home Sales and Core PCE Price Index on Friday.

March 25, 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.

Leave a Comment