CNN reports that the Federal Reserve Board leaves its key short-term interest rate unchanged. By a vote of 9-1, the Fed decided to leave the rate at 2%. The sole dissenting vote was from the Dallas Federal Reserve Bank President, Richard Fischer, who voted for an increase.
It is unclear what this decision means for real estate mortgage rates but my sense is that it may signal mortgage rates are as low as they are going to be in the near future. I believe at this point in time there is a far greater chance mortgage rates will go up rather than down.
1 response so far ↓
1 brian staver // Jul 7, 2008 at 10:01 am
Hi Arn,
Historicially, from my own perspective I see a change in the apr for home mortgages to reflect the rate adjustments in about 18 months after the first adjustment from the fed. ANy news on the homes up for auction?
Brian
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