December 17th, 2019 10:04 AM by Steven Hofberg
There are a lot of winds swirling around the economy right now,
including those from trade, budget, financial markets, and politics. Last
month, the Federal Reserve lowered the federal funds rate by another 0.25%, the
third rate cut since July. Overall, the economy has continued to hum along in
moderate fashion, with some weakening in both actual and projected economic
growth rates. Normally a weaker economic outlook would put downward pressure on
rates, but the news regarding the China tariffs is considered favorable by the
markets, offsetting that trend.
In spite of all of the crosswinds, or perhaps because of them,
mortgage rates have been mostly steady over the past month. They move a little
each way, but have stayed in a fairly narrow range, and remain favorable to
borrowers. Fixed rates are in the high 3s for 30-year financing and in the low
3s for 15-year. Of course, rates fluctuate daily so be sure contact Margie for the most current information.
Steven H Hofberg, Operations Manager