Federal Reserve to Keep Interest Rates Low!
Fed Res to Keep Interest Rates Low!
A great move by the Federal Reserve, Tuesday to keep interest rates low for at least the next several years.
Federal Reserve said it’ll keep its interest rate near zero through mid-2013. This kind of commitment was welcome news to home buyers and many in the real estate industry who see it as a positive move for the housing industry, allowing buyers more time to take advantage of low mortgage rates for the next several years.
The Fed said in a statement following its regular policy setting meeting Tuesday that the overall economy has grown "considerably slower" than it expected and that consumer spending "has flattened out. They are hoping this will help stimulate the economy.
The Fed continues to forecast a moderate pick-up in growth for the economy in the second half of the year, and is still optimistic about the future.
Will this have an impact on Asheville Real Estate? I do believe this will help but with the record low interest rates now has not had a real positive impact yet. Mortgage loan applications are at an all time low and may not change for some time.
I hope the Feds are right that the second half of the year will improve and there are some indications that that could be true so with an optimistic approach let’s take the ride.
