Even though the U.S. economy appears to be on the road to
recovery, the Federal Reserve reports that it will keep low interest rates because
the economy is only growing moderately.
In a statement earlier today after a two-day policy meeting,
the Fed says it will keep buying $85 billion a month in bonds to keep long-term
interest rates low, and encourage more borrowing and spending.
It also says it plans to hold its key short-term rate at a
record low near zero as long as unemployment stays above 6.5 percent and the
inflation outlook remains mild.
It seems that budget policies have restrained growth, but
the sixteen day government shutdown was not mentioned. However, the Fed no
longer expressed concerns about higher interest rates, which has been on
everyone’s radar since September.
The economy added just 148,000 jobs in September, a steep
slowdown from August. The shutdown in October is expected to depress the job
gain for this month. In addition, the shutdown resulted in approximately $25
billion from economic growth this quarter.
Since the September meeting, mortgage rates have fallen
roughly half a percentage point, and remain near historic lows, much to
everyone’s surprise. This comes after
rates jumped this summer, causing some to speculate that the Fed might reduce
its bond purchases. As a result, falling stock and bond prices meant higher
long-term interest rates and wider spreads between the risk-free assets like Treasury
bonds and private borrowing costs for home mortgages or companies looking to
expand. The rate rose from 3.4 percent on a 30-year fixed mortgage to 4.7
percent in September. Right now, rates are at settled in at 4.15 percent.
The budget fight in Congress has clouded the Fed’s timetable.
Though the government reopened on October 17, there are more disruptions and
deadlines ahead. On January 15, another shutdown
is possible. Congress must also raise the debt ceiling by February 7, or else
the government risk default yet again. It
seems likely that the Fed will dial back its bond purchasing in early 2014.
The point is: Go buy a house with leveraged money. Whether
it’s your first house or fifteenth, it’s a good to lock in those low mortgage
rates while you can. Curious what you can afford? Talk to a lender: http://www.nwlistingsearch.com/finance.php
*Excerpted from Time
Author:Troy Anderson Phone: 206-940-2834 Dated: October 30th 2013 Views: 960 About Troy: ~Married with 2 children
~Turned grey prematurely
~Fetish for all things Apple
~Urban chicken far...
TEAM TROY, we are a bunch of fanatics that happen to be really good in the Seattle real estate business. Sure we could exploit systems, alter perceptions, and make more money for the sake of having more, but that’s boring – everyone does that. We’ve come to realize that work should be about increasing our standard of giving, not our standard of living. What keeps us going is our daily fear of dropping dead while doing something useless. We continually aim to be better agents, better neighbors, better partners, better parents, and better people with the singular goal of making folks like you better off than you were before you met us.
Discover our 9 point difference:
“Here at TeamTroy we have found that when we make our only goal, that of making others around us better off than they were before they met us, then everything else just falls in line. This simple mindset protects us from the status quo in real estate, and keeps us obsessed with results.”
Reach out to us today, and find out what you have been missing!
//WISE. Good judgement. Make important choices despite ambiguity. Always strategize.
//OPEN. No walls. Ensure everyone we meet has the same idea of who we are.
//IMPACT. Life is never about us. We strive to make a difference in at least one person’s life daily.
//CURIOUS. Hate the status quo. Learn something from everyone.
//CREATIVE. Challenge the traditional. Incessantly innovate around obstacles and design simplicity.
//BRAVE. Today is not just another day. Never be afraid to try what no one else will do.
//TENACIOUS. Never quit. As others drop back, we run faster.
//CANDID. Honest and blunt. Never alter perceptions but adjust the context.
//SELFLESS. Be salt. Make everything else taste better.
Frequently, when talking about any new real estate market, you go in b
"When my husband and I began our home buying search, we both had decided we did NOT want a real estate agent until the last minute. We have never had a good experience with them and certainly didn't trust them. In fact, just prior to finding Team Troy, I had just fired one that came as part of a service. I was going to get a rebate to use their agent. They couldn't have paid me enough after the interaction with both her and her staff. Once again, she had her own agenda and wasn't listening. Our experience with Justin of Team Troy was completely the opposite. When I first spoke with him, he was advised from the start that we were not interested in having an agent, but just wanted someone to show us a house that his company had listed. After speaking with him for about 15 minutes, we changed our mind. Despite knowing that we weren't interested in an agent, he was obviously excited about what he did for a career. He educated us with no expectation of a return on his time. He was available and supportive through the entire process and I will be doing business with him and Team Troy again soon."