Mortgage Rates Dipped Last Week (But That Is Over For Now)

Freddie Mac’s Weekly Survey was released this morning with its most recent assessment of the mortgage rate landscape. See the details of their survey below.

Mortgage rates dipped last week as expected when long bond rates lowered, but that was short-lived. Long bond rates have risen substantially today, which suggests mortgage rates will be higher in coming days.

(dynamic chart with current info)

Today’s Mortgage Rates & Lenders Today’s Bond Rates

IRS Releases 2020 Retirement Contribution Limits

The new retirement contribution limits for 2020 were just released by the IRS.

401(k) contribution limits increased from $19,000 to $19,500 (with catch-up contribution limits increased from $6,000 to $6,500.)

SIMPLE retirement account limits increased from $13,000 to $13,500.

IRA contribution limits remain at $6,000.

See below for details about the $2,000 increase in the Roth phase-out range and other phase-out changes.

 

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IR-2019-179, November 6, 2019

WASHINGTON — The Internal Revenue Service today announced that employees in 401(k) plans will be able to contribute up to $19,500 next year.

The IRS announced this and other changes in Notice 2019-59 (PDF), posted today on IRS.gov. This guidance provides cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2020.

Highlights of changes for 2020

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $19,000 to $19,500.

The catch-up contribution limit for employees aged 50 and over who participate in these plans is increased from $6,000 to $6,500.

The limitation regarding SIMPLE retirement accounts for 2020 is increased to $13,500, up from $13,000 for 2019.

The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs and to claim the Saver’s Credit all increased for 2020.

Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or his or her spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor his or her spouse is covered by a retirement plan at work, the phase-outs of the deduction do not […]

Mortgage Rates Continued Rise (But Expect Dip In Next Weeks Survey)

Freddie Mac’s Weekly Survey was released this morning with its most recent assessment of the mortgage rate landscape. See the details of their survey below.

Long bond rates have lowered since yesterday’s announcement of a reduction in the Fed Funds Rate, which suggest that mortgage rates will be a bit lower in coming days.

(dynamic chart with current info)

Today’s Mortgage Rates & Lenders Today’s Bond Rates

Prime Rate Lowered To 4.75%

After today’s .25% rate decrease in the target range for the Fed Funds Rate, banks adjusted their Prime Rates with a corresponding decrease from 5.00% to 4.75%. These changes are effective for most banks tomorrow, October 31, 2019.

In addition to interest rate decreases for commercial loans and credit cards, expect rate decreases in many consumer loans which are based upon the Prime Rate – for instance home equity loans, car loans, and personal loans.

FOMC Cuts Fed Funds Rate Again

The Federal Reserve lowered the Fed Funds Rate 1/4 point at the conclusion of their FOMC meeting today. The rate will now be a target range of 1.50% to 1.75%.

Banks are expected to lower the Prime Rate to 4.75% tomorrow.

 


October 30, 2019

Federal Reserve issues FOMC statement
For release at 2:00 p.m. EDT

Information received since the Federal Open Market Committee met in September indicates that the labor market remains strong and that economic activity has been rising at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Although household spending has been rising at a strong pace, business fixed investment and exports remain weak. On a 12-month basis, overall inflation and inflation for items other than food and energy are running below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the Committee decided to lower the target range for the federal funds rate to 1-1/2 to 1-3/4 percent. This action supports the Committee’s view that sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective are the most likely outcomes, but uncertainties about this outlook remain. The Committee will continue to monitor the implications of incoming information for the economic outlook as it assesses the appropriate path of the target range for the federal funds rate.

In determining the timing and size of future adjustments to the target range for the federal funds rate, […]