If any of your New Year Resolutions involves borrowing money, you’re in luck! Both the short-term Fed interest rate and the longer-term mortgage interest rates have been falling in 2020 thus far. After cutting its rates three times between July and August 2019, the Federal Reserve announced in January that it is holding its Fed Fund rate steady at 1.50% to 1.75%. Mortgage interest rates, which track the 10-year Treasury rate, have also been falling since the New Year. Nationwide, as of Jan 31, 30-Yr Fixed Jumbo stands at 3.73%, 30-Fixed Conforming is 3.64%, and 5/1 ARM Jumbo is 3.09%, according to Bankrate.com. We may yet return to the mortgage rate troughs we had last September. Definitely good news for borrowers, including many homebuyers.
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