Freddie Mac Forecast Sees Lower Interest Rates Holding

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Posted To: MND NewsWire

Freddie Mac’s Economic Research Group says in its January forecast that much of the volatility in the mortgage market since the end of the year has arisen out of speculation about the Federal Reserve’s future moves vis-à-vis rate hikes. Because of this they have begun including their estimates for the Federal Funds Effective Rate in their monthly forecast. They have ratcheted back their prediction to only one rate increase this year and expect the fund to average 2.3 percent in 2019. It will then hold steady at 2.5 percent for each of the four quarters in 2020. The current estimates for the fourth quarter of 2018 indicate the growth in the U.S. economy slowed to 2.6 percent. It is anticipated the partial shutdown of the federal government starting in late December and lasting for most…(read more)

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