This breaking news article cover the FED rate cut to lower mortgage rates and spike lending. The news of the Federal Reserve Board to lower interest rate will have an impact on mortgage rates. The FED rate cut to lower mortgage rates and spike lending is expected throughout 2019. Many industry analysts expect lower interest rates in the months to come, including past 2020. The question that still lingers is how much will the Federal Reserve Board cut rates. In this article, we will cover and discuss the FED rate cut to lower mortgage rates.

Hot Housing Market Due To Great Economy and Lower Rates

Mortgage Rates hit a three-year low recently. The housing market never slowed despite high mortgage rates in 2018. Mortgage rates have been sliding lower since the start of 2019. Alex Carlucci is holding off in refinancing his borrowers because he feels mortgage rates are going to plunge in a few months.

Factors That Determine Members of The FED To Lower Interest Rates

There are many factors the committee take into account with regards to the action they will implement on interest rates. However, two main factors in determining to raise and/or lowering interest rates are inflation and unemployment rates. The members of the Federal Reserve Board want the inflation rate to be low. Any signs of higher inflation mean triggering an interest rate hike. Unemployment numbers play a key role in adjusting interest rates. With the above said, a recession does not seem to be imminent until after the 2020 elections.

What Experts Are Foreseeing The FEDs To Do 

Alex Carlucci of Gustan Cho Associates, along with Eric Jeanette of Dream Home Financing, is both in agreement that the Federal Reserve Board will be cutting rates by 0.25%. Eric Jeanette does not expect the FEDs will cut any more than 0.25%. On the other hand, Michael Gracz, the National Sales Manager at Gustan Cho Associates, feels the Federal Reserve Board will be more aggressive and may cut interest rates as much as 0.50% next week. Alex Carlucci is also the host of Gustan Cho Associates Mortgage News and has a 100% track record in predicting how the FEDs take action. FED Rate Cut To Lower Mortgage Rates seems like a reality.

Impact of FED Rate Cut To Lower Mortgage Rates

Interest rate cuts by the Federal Reserve Board has many impacts. Rate cuts by the FEDs have many moving parts and do impact the economy not just on a national level, but on a global level.

How Does Interest Rate Cuts By The FEDs Affect Stock Market

Interest rates have an adverse effect on stock markets. When the stock market is up, interest rates are down. If the stock market plummets, interest rates go up.

The FED Chairman Jerome Powell

The Federal Reserve Chairman Jerome Powell has a lot of pull over its members. Chairman Powell feels the economy is in a great position. His goal is to make sure that the economy remains strong with limited inflation and low unemployment numbers. He does not want to trigger any actions that will make the economy sluggish and drive us into a recession. Chairman Jerome Powell gave multiple signals that the FED will not only be halting interest rate hikes but will be lowering rates in the coming months ahead.