The Fed held its quarterly FOMC meeting last week and announced that it will reinvest principal payments from agency debt, mortgage backed securities and existing Treasury holdings into long-term U.S. Treasuries in an effort to keep interest rates low. It was expected that the Fed would keep rates in the range of 0% – 0.25%, which it did; however, the Fed reiterated that it will support lower rates “for an extended period.” Many analysts expect that the Fed’s current stance will remain until Qtr. 2 2011.
This comes as good news to those who are still planning to buy a home and want to capitalize on the historically low interest rates. In our marketplace, we have also recently heard from banks (who have offered limited financing packages over the past few years and in some cases none for condos) about new programs for purchases of single family homes (15% down with no PMI) and condos/townhomes (with 20% down).
Call 954-351-7007 for more details!
Tags: fed, federal reserve, FOMC, Interest Rates
