We are not in recession... just an economic slow down. So spoke Ben Bernanke, chairman of the Federal Reserve Board. He indicated that the economy is strong and that it should rebound from the slow down with proper incentives and another drop in the Fed Funds rate... WOOHOO!!!
He did acknowledge that the inflation dragon still looms over the horizon, but he is reiterating a greater worry at this time about an economic slowdown than about inflation. So. How low will they go? I bet they go a bit lower even from here. It may be bouncy for a while. Up one day and down another, but I think we'll see more down in the rates for a while than up.
But don't wait long to buy that property or do that refinance. If they keep the rates down for too long we'll start seeing inflation take a toll on our healthy economy and that will bring rate drops to a screeching halt... and maybe even cause a reversal in policy to higher rates.
Get ‘em while they're hot!!!
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