The Federal Housing Finance Agency's mortgage rate reading for purchases of new construction homes in July reflected the ninth month in a row of increases, but Freddie Mac's data differ.
The government-sponsored lender's data show that mortgage rates essentially plateaued in July, down four points to 4.53 percent from 4.57 percent in June 2018. The National Association of Home Builders' analysis says that rates are still hovering close to the cycle peak, despite the slight drop, and reports, "monetary policy continues to exert upward pressure on mortgage rates, and as expected, the Fed held the federal funds rate steady at 1.75 percent to 2.00 percent at the August Federal Open Market Committee meeting."
However, the statement following the meeting reflected the recent firming in inflation, making it possible for a rate increases in September and December of this year. However, if trade tensions intensify, weighing on consumer and business confidences and the equity market, the Fed could temper the rates as a counterbalance measure.
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