Fed Announcement of Low Interest Rates Promising but Don't Wait Too Long
by Erin LaBuda
A lot has changed in the last few months in my life. I've gotten married, we're talking kids and then (of course) we're discussing our housing options. And even though I am a real estate professional, I am also a consumer and the housing market is something that can make us all hesitate after the issues we saw as a result of the housing "boom".
So, when the news came out that the Fed was going to keep the benchmark interest rate at zero or close to it until 2013, I thought, phew, I have some time to get my house ready to sell and not lose the opportunity at hand, insanely low interest rates. And then, wouldn't you know, this morning I read that the Chairman of the Fed in Philadelphia (among others) are confident that the Fed will likely raise benchmark interest rates before mid-2013 and that the promise made is a promise that is likely to be broken.
So, whether the interest rates stay low until mid-2013 and beyond or they go up next week the facts remain the same as they always have in the housing market...We only know what is happening today. And today, a 30 year fixed mortgage is hovering around 4%. Lower than we've ever seen them. Inventory is high, prices are down and really there is no better time to buy.
I guess my new husbands honey-do list just got a little longer...and with a tighter deadline. Won't he be thrilled.
