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The Federal Reserve again leaves interest rates at historic low August 28, 2009

Posted by CraftmarkHomes in Real Estate in the News.
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The Federal Reserve has again left interest rates unchanged.  At the conclusion of a two-day meeting, the Fed voted unanimously to leave its federal funds rate at a range of 0 percent to 0.25 percent, keeping the prime rate at 3.25.

Experts say that the Fed is likely to keep rates at record low levels for some time. “Not only did the Fed keep rates unchanged today, I believe they’ll keep rates unchanged for the next year,” says Greg Valliere, chief policy strategist at Soleil Securities Corp. in New York City.

Monetary authorities are going to keep their foot on the pedal and that is going to translate into reduced borrowing rates in the hopes of supporting demand as we move into recovery.

Average interest rates for 30-year mortgage loan ticked up a little after the Fed’s announcement, but are still at historically low levels. The average interest rate on a 30-year fixed-rate mortgage was only 5.42 with 0.7 points on average for the week that ended on June 25, 2009, the date of the Fed’s statement. The average rate for a 15-year fixed-rate mortgage loan was 4.87 percent, with 0.7 points on average for the same week. Those averages are according to Freddie Mac’s weekly survey of mortgage loan interest rates.

The news of the stable rate has brought feeling of happiness for the homeowners who were troubled because of high interest rates.

The Fed’s statement has brought an optimistic approach towards the economy of the country. These policies have potential to change the present scenario of the economic condition of the country. 

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