Cindy's Blog

Well, today the Fed announced that they would keep the target for the fed funds rate unchanged, at a range of zero to .25%. You can't really go much lower than that, thus the prime rate stays at the current 3.25 percent. What does this mean for you? Interest rates will most likely remain unchanged for anything pegged to the prime (home equity lines, credit cards).

Of course, there are no more cuts tot the federal funds rate possible, but they do still have some tricks up their sleeves to stimulate borrowing, and they're starting to pull them out. For the last three months, the Fed has said that they would consider buying Treasuries, and now they have made the commitment to do just that, buying up to $300 billion in long term Treasureies over the next six months, with the goal of decreasing interest rates on loans to both business and consumers.

In addition to these moves, the Fed has committed to more than doubling its purchases of mortgage backed securities (this is the really good part!). This should really put a ceiling on the 30 year fixed mortgage rate, and should keep it at or around 5% or so for months as a result.

This could really be a huge boost for those folks that are on the fence about buying, or thinking that this may be a good time to buy. Even if you don't net quite what you want on your current home, you may still be in a terrific position, once you look at what your new payments would be with the lower interest rates, etc.

If you have any further questions, or want the names and info of some terrific lenders, that can really give you all of your options, email me, or give me a call!