{"id":259,"date":"2012-01-26T19:05:50","date_gmt":"2012-01-26T19:05:50","guid":{"rendered":"http:\/\/riverbankfinance.com\/blog\/?p=259"},"modified":"2012-01-26T19:28:38","modified_gmt":"2012-01-26T19:28:38","slug":"fed-rates-to-be-low-until-2014","status":"publish","type":"post","link":"https:\/\/riverbankfinance.com\/blog\/fed-rates-to-be-low-until-2014\/","title":{"rendered":"Fed Rates to be Low Until 2014"},"content":{"rendered":"

\"Fed<\/a>The feds have just announced that they will be keeping the Federal Reserve rates low until 2014.\u00a0 In the past they announced that rates would remain low until the middle of 2013, which helped the market confidence and ensures recovery.\u00a0 The recovery has been present however it has not been as \u201cbooming\u201d as economic analysts were hoping.<\/p>\n

As with everything that relates to the economy, there is always some sort of backlash.\u00a0 Unfortunately, it\u2019s not always good backlash either but this was one of the rare instances where the markets reacted in a positive way.\u00a0 Once the announcement was made, the Dow rose near 200-points by 11AM after markets opened.\u00a0 There are economists warning of this only being a \u201ctemporary\u201d solution to our problems though.\u00a0 Much like a band-aid, we may be covering up the wound for now and allowing it to slightly heal but more attention will be required to fully-heal in the near future.<\/p>\n

There is also the looming possibility that the Fed could potentially raise interest rates sooner if the economy heads within the right direction.\u00a0 The following are words from a senior economist regarding the Fed\u2019s announcement,<\/p>\n

\u201cIt\u2019s not a vow or a commitment.\u00a0 If the outlook changes on the unemployment or inflation, the Fed reserves the right to change its mind.\u201d<\/p>\n

So it would be ill advised to count on these low rates to remain intact until the point the Federal Reserve stated.\u00a0 As the current economic situation stands, we are slowly improving and it seems we will continue to improve in just about every key-aspect so the chances of the Fed\u2019s switching their stance on lower rates has potential.<\/p>\n

This announcement from the Fed\u2019s came after their annual voting-member shuffle.\u00a0 With the changes made to the members in-tact, we are introduced to four new members; John Williams of San Francisco, Dennis Lockheart of Atlanta, Sandra Pianalto of Cleveland and Jeffrey Lacker of Richmond.\u00a0 Besides this shuffle amongst the members, the first Fed meeting of this year is a noteworthy situation as this will be the very first time they release economic forecasts.\u00a0 These forecasts are meant to predict where the federal funds rate will be over the next coming years.<\/p>\n

Low Fed rates are excellent for mortgage rates for in 2012.\u00a0 Although the Fed rates are not directly connected with mortgage rates, if banks can borrow money from the feds for less, then they can offer mortgages for less as well.\u00a0 The confirmation that fed rates will be low until mid-2014, mortgage rates should maintain lower levels for the foreseeable future.<\/p>\n

If you are interested in refinancing or buying a home, this might have helped to buy you some time. Do not make the mistake of thinking rates are going to be low forever.\u00a0 Our advice would be to lock in your mortgage rate as soon as you are able.\u00a0 You have more to lose by not locking in your mortgage rate immediately than you do by waiting for even low rates.\u00a0\u00a0 For more information on current mortgage rates call Riverbank Finance<\/em> at 1-800-555-2098<\/strong> or submit a request for information below.<\/p>\n

Questions about mortgage rates?<\/h2>\n\n
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