Shelter Six:  Fed Leaves Rates Unchanged

As expected, the Federal Reserve made no change to the Fed Funds Rate last week.

Inflation continues to run below the Fed’s target of 2%, which has stirred increased expectations that the Fed might actually cut rates before the year is out.

Fed Chair Powell addressed this speculation, however, by stating that Fed officials “don’t see a strong case for moving rates in either direction.”

The economy added 263K jobs in April, well above the 190K forecasted.  The Unemployment Rate unexpectedly declined from 3.8% to 3.6%, the lowest level since 1969!

Shelter has just launched a Temporary Buydown program, which allows for the reduction in the Borrower’s mortgage payment by 2% in the 1st year and 1% in the 2nd year of the loan.

This program can be invaluable for advertising listings as the Buydown fee can be paid for by the Seller.  This program is for Conventional Conforming Fixed-rate purchase loans only.

Rate Update

There was a lot of economic news last week that led to a lot of rate volatility, but the various influences were offsetting and mortgage rates ended the week nearly unchanged.

This Week

The JOLTS report will be released on Tuesday and the Consumer Price Index (CPI) on Wednesday. Investors also will be watching for news about the trade negotiations between the U.S. and China.

May 6, 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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