Food For Thought: Interest Rates 2019


We often marvel at the uniqueness of the Bozeman real estate market, but in certain areas, we are fully integrated into the national experience.  One example: Mortgage interest rates.

While the FED raised rates 4 times in 2018, they have acted cautiously in 2019 and kept steady at each meeting.  Mortgage rates corresponded and began the year at around 4.6%,  as a result of the 2018 hikes.  However, with the inaction on rates this year by the FED, mortgage rates have actually dropped to a two year low.  Rates today were quoting about 3.6%, down from 4.6% in January.  This can mean great news for housing, so long as there is inventory.  In fact, in the Bozeman market, it can be less expensive on a monthly basis to purchase than to rent (again, a function of inventory).  This is also good for lenders, as homeowners planning on staying put long term may find refinancing an attractive option now.  Late 2018 predictions had interest rates seeing 5% in 2019...Clearly, that has not happened yet and things have trended in the opposite direction.  Now the bond market is pricing at a 100% chance of a rate cut in July (a predictor by investors of what's to come)...What does that mean for mortgage rates?  Well, we'll find out!

To learn more about how the FED influences rates, and more current news, check out the following articles:

Ami Sayer

Ami Sayer

Ami Sayer
Sales Associate
Montana Properties
2001 Stadium Dr.
Ste. A
Bozeman, MT 59715

Office Phone: (406) 580-0481
Mobile Phone: (406) 580-0481

1 thought on “Food For Thought: Interest Rates 2019”

  1. The brand new idea is here). I have read the article with amazing satisfaction and even could know something new I will use for your own additional requirements.
    The guide is clear and bright, without the additional
    worthless details or else. The language is both brilliant
    and colorful, so the longer I see, the longer I do like it!
    Besides, the information is rather cutting edge, so like it.

Leave a Reply

Your email address will not be published. Required fields are marked *