My New Blog

Two weeks ago the Federal Government announced that it intends to purchase up to 600 Billion in Mortgage backed securities which have been a huge drag on Banks balance sheets. Today the Federal Reserve cut it's Federal Fund target interest rate to a .25% which is the lowest since tracking of this interest rate began. The combination of these two moves has brought down conforming interest rates on average of between .50% and .75%. This in turn is closing the gap between the medium income and the medium prices of homes across the country. As we move into the next year, if interest rates remain this low we may begin to see some price stability begin the return to the Real Estate market.