Fabulous News For The Real Estate Market
Wednesday (08/10/11) brought wonderful surprises to buyers, sellers, and refinancers around Whatcom County. All the local lenders were touting amazing rate drops on their loans —following Tuesday’s Federal Reserve Announcement (see except below). These new rates and low loan fees make this an AMAZING TIME to buy a home, buy an investment property, or refinance your present home. See below the text of Tuesday’s Federal Reserve Announcement which stimulated the rate drops. And more excitingly,check out the PDF below for the LOW LOW LOW rates and principal & interest payments on a $200,000 loan from Bank of the Pacific.
For a PDF of interest rates as of August 10th, 2011, click here: Interest Rate Sheet
“To promote the ongoing economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent. The Committee currently anticipates that the economic conditions —including low rates of resource utilization and a subdued outlook for inflation over the medium run—are likely to warrant exceptionally low levels for the federal funds rate, at least through mid 2013.”
- Federal Reserve Announcement 8/9/2011.
For more, please visit: www.lindazemler.com/FRannouncement
Proponents argue low interest rates encourage lending and home buying. But is that the real reason, or is it an attempt to make all money active in the economy by either being spent or invested?
Yes, and Yes,
Low interest rates are an attempt to make money active in the economy by being spent or invested.
As a by-product, it stimulates both lending and home buying.
Linda