31 Jan A lot is happening and I want to keep you informed
Consumer confidence and interest rates directly impact home sales! According to some of the financial sources I follow, a lot is happening and I want to keep you informed!
Stocks continued to react positively to Fed Chair Powell’s Jan 4th speech, where he essentially said, “we have your back” — meaning that the Fed will be “flexible” and may not raise rates at all in 2019.
Even with a trend of lower rates (lowest since the Spring), we should not expect long-term rates to move too high. Why? Inflation is not a threat. Fed President Bullard, also said he expects inflation to be near current levels for the next 5 years. If this is the case, home loan rates could remain attractive for longer than expected.
The Fed is data-dependent; they watch incoming economic reports to help determine their moves regarding rates. This week brings a full slate of economic reports including numbers on housing, manufacturing, consumer spending and overall sentiment. It would take a surprising positive change to cause the Fed to hike rates before June. Other reports that could impact the Fed are the Retail Sales and Housing Starts may not be released at their expected time if the government shutdown continues.
The key is to make your plan and then implement it! I have been involved with lending and home sales since 1989. If you would like to have a one on one no obligation evaluation of your individual plans, please call or e mail [email protected] I love being a resource!