The Federal Reserve finished their first two-day meeting of 2009 Wednesday with no changes to their short-term interest rate policies. The Fed intends to keep their Fed Funds rates close to 0% for now to help stimulate the weak economy. The Fed controls the short-term lending rates between themselves and large banks. Long-term fixed mortgage rates are controlled by financial markets. They also remain at historically low levels.
None of us know what it will take to fix the current financial crisis we are in; what we do know is that with 30 year fixed mortgage rates at 40+ historic year lows in the mid-to-upper 4%’s, it could be a perfect time to consider buying a first home or upgrading to a new one.
There were many topics discussed at the Federal Reserve meeting, but the majority of the discussions dealt with how to repair the economy and the housing crisis. The Fed said that they stand ready to take steps to help stimulate the economy and get it on track.
Nick Sivertsen, Summit Mortgage nick@nicksivertsen.com
