Fed Leaves Rates Alone, For Now.
Today the Federal Open Market Committee voted unanimously to hold the overnight federal funds interest rate at 5.25%. Good news for home buyers, as this was the 5th straight "hold it" decision made by the inflation weary body. The Federal Reserve still warned of future inflation risks to our economy, while at the same time noting improved stability in the housing market over recent months.
But with the good news of a housing market returning to relative good health, and strong showings in the economy by way of various indicators, the Fed will likely be able to justify a rate increase rather than a rate decrease. To fight off inflation they will increase interest rates so as to put the breaks on growth and over heating of the economy.
Buyers - its time to buy NOW! The economy has been very resilient, and the housing market keeps coming out with good news. If this continues, its likely they will increase at least once or twice. If you are planning on buying a home in 2007 - I suggest you purchase prior to the next meeting of the FOMC on March 20th and 21st!
This 1st quarter is the perfect time to buy ANYWAY in 2007, its right before sellers will start to sense that there are more buyers in the pool than normal. The less you compete with other buyers, in months such as May and June...the better a deal you will likely get on the home of your choice.
Always at your service...
Robert Mickalson
Realtor ® & Property Management Specialist
Vintage Sotheby's International Realty
Peninsula Rentals and Property Management
Mobile: 661.373.2374
Office: 661.219.2260
Fax: 661.219.2264
"By The Way...I am NEVER to busy for your Referrals"
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