After meeting for two days the Federal Reserve announced that it is keeping interest rates at historically low levels for the foreseeable future and is dropping a link between the interest rate and specific levels of unemployment. You can view the Fed Chairs comments here.
Fed Chair Janet Yellen said "Unless inflation were a significant concern, we would never dream of raising the federal funds rate target." This is great news for our industry and here's why. As a mandate of policy, as unemployment falls, it fell to 6.5%, the Fed was going to raise interest rates as falling unemployment is a sure sign of recovery right? This new decision by the Fed to take into account other economic criteria, shows fiscal responsibility and highlights just how fragile the economy still is. The benchmark rate, is close to zero and the Fed predicts it will rise to "at least" 1 percent by 2015 and 2.25% the following year. So interest rates will be on the rise. That means we have two solid years to get people into homes at historically low interest rates. What are you waiting for folks the time to move and grow is now.
