Federal Reserve Chairman Jerome Powell announced that the fed had dropped its target rate by .25% to 2% on July 31. That rate cut, the first cut in over a decade signaled a change in policy by the Fed. Chairman Powell stated that, “the U.S. economy was favorable, and this action is designed to support that outlook. The cut is intended to ensure against downside risks from weak global growth and trade tensions.” After the cut was announced stocks dropped, and bond and mortgage interest rates dropped.
The August 1, 2019 Freddie Mac Primary Mortgage Survey showed mortgage rates for the most popular loan products as follows: The 30-year fixed mortgage rate average was 3.75%, down from 3.73% on June 27. The 15-year fixed was 3.20%, down from 3.16% last month. The 5-year ARM was 3.46%, down from 3.39% last month.
