Will Interest Rates Stay Low In 2009

Is 2009 a good time to buy?  

Stocks surged today after the Federal Reserve signaled there’s virtually no chance of a interest rate increase in 2009. For the first time in months, the Fed did not say the economy is contracting, an acknowledgment of signals that a recovery is forming. Instead, the Fed said that “economic activity is leveling out.” Nonetheless, it added that “substantial resource slack is likely to dampen cost pressures.” So, the central bank “expects that inflation will remain subdued for some time.”In other words, no interest rate increases until at least next year. Stock investors appeared to be pleased. The Fed left its federal funds rate at 0% to 0.25%. The fed funds rate is what banks charge each other for overnight loans and is the key determinant of U.S. interest rates.

 

As the Fed agrees “economic activity is leveling out” and mortgages are still cheap, who knows what the new year will bring. However one things for certain, as home sales pick up the fed will control the inflation with raising interest rates. For you first time buyers you need to buy in 09 to take advantage of the $8,000 tax credit.

Eddie Stokes California Mortgage. Contact us for the best interest rate

See all in: Loan Programs

Call Brett Dalbeth
for Showings or more information
888-399-4844

Disclaimer

If a listing displays "Short Sale/Subject to Lender Approval" then that listing has been identified by the seller and the listing broker as a "short sale". This means that, at the listed price, the proceeds from the sale may not be adequate to pay all liens and costs of sale. Any offer made that does not fully cover the existing amount(s) owed to the lienholder(s) plus the costs of sale could be subject to lienholder approval, which approval may be exercised at the sole and exclusive discretion of the lienholder(s). The information being provided by SoCalMLS, CRISNet Regional MLS and/or CARETS is for the consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumer may be interested in purchasing. Any information relating to real estate for sale referenced on this web site comes from the Internet Data Exchange (IDX) program of the SoCalMLS, CRISNet Regional MLS and/or CARETS. This web site may reference real estate listing(s) held by a brokerage firm other than the broker and/or agent who owns this web site. The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals. The data contained herein is copyrighted by SoCalMLS, CRISNet Regional MLS and/or CARETS and is protected by all applicable copyright laws. Any unauthorized dissemination of this information is in violation of copyright laws and is strictly prohibited. Copyright SoCalMLS®, CRISNet Regional MLS®, CARETS®

Leave a Comment

*