Just yesterday, the Federal Reserve decided to keep its key interest rate at a record low, and repeated its pledge to maintain interest rates at historic lows for an extended period. This is yet another reason why it’s a good time to buy a home.
A statement from the U.S. Federal Open Market Committee said of the decision, “To promote the ongoing economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to keep the target range for the federal funds rate at 0 to a quarter percent.”
How long will it last? “The Committee continues to anticipate that economic conditions – including low rates of resource utilization and a subdued outlook for inflation over the medium run – are likely to warrant exceptionally low levels for the federal funds rate for an extended period,” the statement continued.
However, this does not mean that buyers should delay. Yes, the interest rate will remain low for awhile; but in some markets, housing market activity has slightly picked back up. At Keystone Custom Homes, we have seen activity increase over the past year. So despite an extension on low interest rates, buyers should still act now when it comes to acquiring their dream home.