Financial markets, home owners, and even politicians have been screaming for lower interest rates. This could signal an imminent cut as low as 3.65 percent.
So, what's the delay? Opponents state that the federal policy will be driven by economic data, and they are pointing to signs of slowing U.S. growth partially caused by disagreement over the tariffs with China.
However, most seem in a agreement that the cuts are likely to occur sooner rather than later.
This means, IT'S TIME TO BUY!
Optimism for the economy has sent stocks increasing and home sales on the rise.
The California Association of Realtors reported California's median home price edged higher to another peak for the second straight month as lower interest rates helped bolster home sales.
After surpassing its prior price peak in April 2019, the statewide median home price reached another new all-time high in May, hitting $611,190. May's median price was up 1.4 percent from $602,920 in April and up 1.7 percent from $600,860in May 2018.
The 30-year, fixed-mortgage interest rate averaged 4.07 percent in May, down from 4.59 percent in May 2018, according to Freddie Mac. The five-year, adjustable mortgage interest rate increased in May to an average of 3.65 percent from 3.79 in May 2018.
With this news, our colleagues at Samantha Scherr at Movement Mortgage have advised our home buyers to ask the following questions when shopping for a mortgage.
Top 5 Questions to Ask When Shopping for a Mortgage
Does this interest rate have points?
Are your closing costs inclusive of my prepaid property taxes, insurance and mortgage interest?
How much more money do I need saved in reserves besides the down payment and closing costs?
How long will it take until I have underwritten approval?
How long will it take you to close my loan?