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
