- Rates dropped under 5% for first time since September
- Mortgage applications are up 1.6% in December
- Purchase applications up 3% this week
According to the Mortgage Bankers Association latest index mortgage applications have increased 1.6% from the previous week. Interest rates are down 12 basis points in the last week, representing the biggest weekly decline since 2017.
New purchase applications have made up the majority of the increase, having jumped 3% from the prior week.
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Will the Fed Issue a Rate Hike in December?
We’ve enjoyed interest rates between 3%-4% for the past 10 years. But, rates have drifted over 5% in 2018 and may go even higher in 2019.
The dip in rates below 5% may be a temporary one as the Fed meet s Dec. 19th to decide on a rate hike.
If you follow the stock market you may think that the U.S. economy is struggling, but that is not the case. The unemployment rate is at historic lows coming in at 3.1%. The rising economy is leading the Fed to consider a series of rate hikes in the coming months.
The first hike is likely to happen this month, December 2018, with another rate hike possible in March 2019.
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