Fed Vows To Keep Interest Rates Low

In an unprecendented move yesterday, the Federal Reserve anounced it planned on maintaining the historically low interest rates for a period of 22 months as the global economy teeters in and out of a double dip recession.

This news is of particular significance since the major push from economists and real estate entities such as the National Association of Realtors was greatly influenced by the impeding increases in interest rates expected towards the end of this year and beyond. This move to keep rates this low will bring much releif to those first time home buyers who definitely see the advantages of buying today yet do not have the necessary resources to do so. This will allow for many on the fence to buckle down and be somewhat confident in their ability to buy in the near future.

Eliminating this uncertainty in the marketplace is a positive for many, leaving only home values up in the air.
So what will happen to home values now?

According to many, we are nearing the bottom of the housing market with Feb 2012 as the target lows for the nation (real estate is local and may be different in your market) This will give many a tremendous opportunity to not only buy real estate and record low values but also take full advantage of the Fed’s gift of low rates.