Interest rates are holding steady for now, but a volatile political climate and mixed economic reports could push markets in either direction.
Challenging political times, trade tensions between the United States and China, a so-so March jobs report created market volatility in early April. With Fed Open Market Committee (FOMC) members suggesting a cautious path, interest rates were held steady, which is good news for home buyers.
The trade conflict and other breaking news, along with soft inflation data put slight downward pressure on mortgage rates, but they remained remarkably steady, which suggests that, at least for now, markets are writing off recent developments as transitory.
Expect to see more news in the coming weeks from the FOMC, indicating where interest rates will go.
Rates could rise if there is no de-escalation of trade tensions, if military action in the Middle East flares up, or if potential leadership changes in Congress point to tighter fiscal policy. Loose fiscal policy has been one factor contributing to rising rates since the start of 2018.
Interest rates are still good for home buyers ready to jump into the market now, but don’t wait. While rates are holding steady for now, market conditions could mean a continual slow rise.
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