FED Holding Rates

Today in the Orange County Register there is an article on The Federal Reserve (FED) holding rates low. The vote was 9-1 last week to keep rates low. The record low interest levels will be here for an "extended period".



One reason for the continued low rate was weaknesses in housing, commercial real estate and employment. The FED also suggested that Europe's debt problems pose risks to the U.S. economy.



The FED went on to say that the financial conditions have become less supportive of economic growth on balance, largely reflecting developments abroad.



However, the FED did state they felt the recovery will stay intact despite threats from abroad and at home. The yield on 10 year Treasury note, a benchmark for mortgages and other consumer loans, fell to 3.12 percent from 3.25 percent late Tuesday. That level has not been reached in over a year.



The fear is that is interest rates are too low for too long they could cause inflation.

Tim Lorenz

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Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!