Shelter Six:  Rates Projected to be Cut in both U.S. and Europe

Last week’s Federal Reserve Meeting brought no surprises.  As expected, the Fed left rates unchanged and its statement was right in line with investor expectations.

Nearly half of Fed officials now predict, however, that there will be a rate cut by the end of the year and some investors project a .25% cut on July 31 and another .25% in September.

The main catalyst for a rate cut is an uncertain economic outlook due to a weakening global economy as well as stalled out trade negotiations.

The European Central Bank also unexpectedly announced last week that it very well may start cutting rates as soon as next month.

Strong housing news for May came out last week showing Existing Home Sales up 3% from April and Housing Starts also higher than projected.

National housing inventory now stands at a 4.3-month supply, which is on the way up but still well less than the 6-month supply considered healthy.

Rate Update

Mortgage rates ended last week at the lowest levels in more than two years as more projections mount for rate cuts both in the U.S. and in Europe.

This Week

New Home Sales are due out on Tuesday, Durable Orders on Wednesday, and the Core PCE Price Index on Friday.

June 24, 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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