This week brought surprising financial news, as Federal Reserve Chairman Ben Bernanke announced that the Fed would not be deviating from its current monetary policy, nor cutting its 85 million dollar per month bond purchase. This was a surprise to Wall Street who expected that the Fed would stop buying as many mortgage backed bonds in order to curb inflation and national debt.
For the majority of us who don't really know what this all means, the answer is pretty simple. As the federal reserve buys bonds, it changes the risk profile for lenders. As the risk is lowered, lenders are willing to make money available to home buyers at lower interest rates. Last week the interest rate actually fell slightly. This was after interest rates have been on the rise in recent weeks. We would expect that interest rates will continue to come down a bit more before the Fed changes their policies.
This is all great news in housing and interest rates, probably great news for home builders, home buyers, and sellers - but not great news on the overall strength of jobs and the economy.
To continue reading more about what this means please read our blog located at Sacramento Realtor.
Experienced Sacramento Real Estate Attorney and Sacramento Realtor
Sarah Litchney is a licensed California Attorney, Sacramento Realtor and co-founder of StoneCrest Realty. StoneCrest Realty is a full service residential and commercial real estate brokerage. In addition to the brokerage, Sarah is the founding attorney of Litchney Law Firm, P.C.
Her practice centers on transactional real estate work. She represents developers, investors, and individual buyers and sellers and their funds in a wide range of matters including acquisitions, dispositions, development, leasing, financing, short sales, general real estate transactions and foreclosures. Her clients range from individuals, investors, corporations, and institutions across all asset classes of real estate, including residential, multi-family and commercial.
Contact Sarah Litchney by calling 916.757.6000 begin_of_the_skype_highlighting916.757.6000 FREE end_of_the_skype_highli
Attorney at Litchney Law Firm, broker at StoneCrest Realty. DRE License # 01704912.
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