Several months ago, the Fed committed to three rate hikes this year and then laid out a timeline to make that happen. There has been one 1/4% bump so far in 2017. The chances of the scheduled increase happening in September is now at 0%, and the likelihood of the forecasted rate hike occurring in December is only 26%. Fed Governors, speaking independently, continue to cite a lack of inflation as the fundamental rationale for letting near-record low interest rates to continue. Sometimes it’s OK to change your mind.
Aside from stagnant growth, other considerations keeping interest rates low include North Korea continuing to test nuclear missiles, the national debt ceiling needing to be increased again, and a string of hurricanes wreaking havoc across the South. Long term mortgage rates are as good as they have been since last November.