2019 mortgage interest rates decrease to their lowest point in nine months. Both 15- and 30-year mortgage loan rates are down, which could increase activity in the U.S. housing market.
Mortgage Rate News
According to mortgage-finance company Freddie Mac, “The combination of improving affordability and more inventory than the last few spring selling seasons should lead to improved home sales demand.” The average rate for a 30-year fixed mortgage has fallen to 4.28% as of March 21, 2019. This is down from 4.41% on March 7 and significantly lower than the 4.94% seen in November 2018.
Mortgage applications have gone up slightly, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. “Lower mortgage rates and cooling home-price growth in early 2019 have been positive developments for home buyers who delayed their search because of cost constraints,” said Bob Broeksmit, MBA president and CEO.
The mortgage interest rates decrease over the last few months may help homebuyers who were on the fence decide to move ahead with securing a mortgage on a new home.
Federal Reserve officials updated their economic projections, trimming the number of increases they foresee in 2019 from two to zero. Meaning there should be no more rate hikes in 2019.
“The reason we’re on hold is that we think our policy is in a good place, and the economy’s in a good place, and we’re watching carefully,” said Fed Chairman Jerome Powell. “It’s a great time for us to be patient and watch and wait and see how things evolve.”
Danielle Hale, chief economist at Realtor.com, said “Mortgage rates changed very little over the last week and remain below where they were one year ago.”
Mortgage applications increased 5.3% over the last week, the refinance index rose 5% from the previous week and the purchase index grew 6%.
All these indicators, especially the recent mortgage interest rates decrease, mean that homebuyers who are looking to lock in a low mortgage rate can move forward with confidence as we move into the peak home-buying season of 2019.
McKee Homes is doing our part to help homebuyers save money on a new home by offering buyer incentives that include up to $7,500 to use as you choose on the purchase of select homes. We also cover up to $5,000 in closing costs in select neighborhoods when using one of our preferred lenders.
“We’ve seen a continued momentum in our sales as buyers are taking advantage of lower rates and different lender financing programs. We have quick move-in homes available which has helped our buyers who feel an urgency. We have also experienced company record breaking sales in January and February. It’s great to go in to the Spring season with such enthusiasm and excitement for our homebuyers.” says McKee Homes Director of Sales and Marketing, Patty Sloan.
Now is a great time to take advantage of lower interest rates, incredible buyer incentives and low or no closing costs on a new home. To see a list of our preferred lenders and get pre-qualified for a home mortgage, visit our New Home Financing web page or give us a call at 910-672-7296.