Borrowing costs will continue to trend upwards in 2019 as the economy slows and the Federal Reserve raises interest rates accordingly, experts with consumer financial services company Bankrate predict.  Bankrate’s Chief Financial Analyst Greg McBride said borrowers can expect to pay more out of pocket with two interest rate bumps expected later this year.  Although the situation is fluid and rate hikes are not guaranteed — CNBC reported this week that the markets expect the Fed to hold off on rate hikes and potentially even make cuts to please President Donald Trump — the Fed raised the benchmark interest rate a quarter point in December and predicted there would be two more increases in the new year.
McBride expects that the Fed's funds rate will rise to between 2.75 percent and 3 percent by the end of 2019, driving the economy into a full-on slowdown by year-end and adding to worries of a looming recession. Mortgages
McBride said that after a sharp drop in December, bond yields and mortgage rates are expected to trend back up in 2019.  “When investors are ready to embrace risk assets again, that won’t be good news for mortgage rates,” he said. McBride believes mortgage rates will pass 5.25 percent before eventually dipping to an average rate for 30-year fixed mortgages of 4.35 percent. However, Mike Fratantoni, chief economist at the Mortgage Bankers Association, said rate increases should be low over the next two quarters.  “I expect that we’re going to be in a pretty good position for the spring housing market with rates a little bit lower than we have seen just a few months ago (and) more inventory in the market,” Fratantoni said.
Continue reading on bizjournal.com
"I expect that we’re going to be in a pretty good position for the spring housing market with rates a little bit lower than we have seen just a few months ago (and) more inventory in the market,”  Fratantoni said.
Borrowers could face rising interest rates in 2019
Anne Stych, Contributing Writer
Jan 11, 2019, 9:49am EST
Bizwomen, the business journal
Linkedin-Darknew_1
SHARE
Facebook-DarkLinkedin-Dark
BANKING & FINANCE
Advertisement
ONE_QUARTER_PAGE_AD_BR_DEC__2018_ROGUE_COUNTRY_CLU
Advertisement
EAT_LOCAL
CREATING A STRONG ECONOMY
Eat. Drink. Be Local.
The Chamber of Medford/Jackson County
101 E. 8th St.  |  Medford, OR 97501
Phone: (541) 779-4847
facebook.svglinkedin.svg
Get the latest installment with best practices, examples, and SEO tips straight to your inbox each week.
Subscribe