The Federal Reserve announced that they will be keeping interest rates low, near all-time historical lows, at least through the end of 2014.
What does that really mean?
It likely means a few things. First and foremost, it unfortunately means that the Fed does not have a very strong outlook for US economic growth in the next 2 years. Many analysts have revised their growth projections for 2012 to be slightly lower than they were anticipating last year. Most of this is likely due to fears about a looming European recession.
So that’s the bad news. What’s the good news?
The good news is Real Estate related. If the Fed is going to keep rates low through the end of 2014, this means housing affordability will remain extremely high. As I’ve previously demonstrated, the low interest rates we are seeing now, make owning a home $100’s of dollars per month cheaper than if rates were to revert to a more “normal” level. (Read: Real Estate Outlook 2012)
The buyer’s market we are experiencing should continue until interest rates start to move back up, distressed product is moved to the hands of performing owners, and inventory levels revert to normal.
How can you capitalize on this attractive market? Start looking for your home now!
Are you a first time home buyer?
Did you know that if you qualify, you can buy with as little as 3.5% down? In today’s market, you can often times be paying less per month to own then you are now to rent!
Do you have a home to sell first?
Whether you are a first time home buyer, a move up buyer, a move down buyer, or a second home buyer–the time to start looking is now! Let one of our brokers help you with your home search immediately–it’s completely 100% FREE!
Buying a home is a lengthy process. By the time you spend 2-3 months searching for the perfect house, and another 30-60 days in escrow, it can easily take up to 5 or 6 months to complete a home purchase, and even longer if you have a home to sell. Don’t miss out on this once in a lifetime buyers’ market. Call us at 1-800-287-1808.
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