Real Estate News with Terri Taydus, AHWD, CNA, CRS, GRI

As reported in Realtor Magazine (see
article below), the Fed plans to keep interest rates low for the next two years
in hopes that it will boost our economy.
That said, there is no guarantee
that the rates will remain low – or as low as they currently are. If you are considering purchasing a new home
or refinancing your current home now is a good time to take advantage of the
low rates.

In an unusual step, the Federal Reserve
vowed Tuesday to keep interest rates low for at least the next two years.

The Fed said it’ll keep its key benchmark
interest rate near zero through mid-2013. The Fed’s commitment was welcome news
to many in the real estate industry who see it as a positive move for the
housing industry, allowing buyers more time to take advantage of ultra low
mortgage rates.

The Fed said in a statement following its
regular policy-setting meeting Tuesday that the overall economy has grown
"considerably slower" than it expected and that consumer spending
"has flattened out." Some economists in recent days have expressed
concerns that the U.S. is heading for a double-dip recession.

Fed officials "are very nervous
about the economy," says Mark Zandi, chief economist at Moody's Analytics.
"This is unprecedented for the Fed to indicate they are ready to keep
rates low for two more years."

Still, the Fed continues to forecast a
moderate pick-up in growth for the economy in the second half of the
year.