The Fed scraps plans for additional rate hikes in 2019

In December 2018, it raised rates, but backed off its forecast to hike rates three additional times in 2019. It predicted just two rate increases this year.
Fast forward to the March meeting, where it completely scrapped plans to raise its benchmark rate at all.
It cited “slower growth of household spending and business fixed investment in the first quarter” as well as “global economic and financial developments and muted inflation pressures” as reasons it was backtracking on its rate-hiking plans.
This is the kind of sentiment that helps mortgage rates, but will rates continue to drop?
It’s a possibility. However, according to Freddie Mac, rates are already at 14-month lows as of the time of this writing. Lower rates are becoming less likely.
There’s a greater chance that rates will rise again soon.

Posted in Mortgage, Rates.