August 15th, 2011 2:24 PM by Taydus Taydus, AHWD, CNE, CRS, GRI
As reported in Realtor Magazine (seearticle below), the Fed plans to keep interest rates low for the next two yearsin hopes that it will boost our economy. That said, there is no guaranteethat the rates will remain low – or as low as they currently are. If you are considering purchasing a new homeor refinancing your current home now is a good time to take advantage of thelow rates.
Please do not hesitate to contact me ifyou are considering selling or buying as I would be happy to assist you. If you are thinking about refinancing pleasecontact your mortgage lender, or contact my preferred lender Joe Taydus at(303) 514-1151 J
In an unusual step, the Federal Reservevowed Tuesday to keep interest rates low for at least the next two years.
The Fed said it’ll keep its key benchmarkinterest rate near zero through mid-2013. The Fed’s commitment was welcome newsto many in the real estate industry who see it as a positive move for thehousing industry, allowing buyers more time to take advantage of ultra lowmortgage rates.
The Fed said in a statement following itsregular 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 expressedconcerns that the U.S. is heading for a double-dip recession.
Fed officials "are very nervousabout the economy," says Mark Zandi, chief economist at Moody's Analytics."This is unprecedented for the Fed to indicate they are ready to keeprates low for two more years."
Still, the Fed continues to forecast amoderate pick-up in growth for the economy in the second half of theyear.