What Does It All Mean In Tooele ? Can I Buy A House ?
The Federal Open Market Committee voted to leave the Fed Funds Rate unchanged today within its target range of 0.000-0.250 percent. The Fed also reiterated its plan to support the mortgage market to the tune of $1.5 trillion.
I read these press releases every day or so and generally walk away shaking my head wondering what it all means for the 556 people trying to sell their Tooele home and the approximately 50 people that will actually buy a home in Tooele, Stansbury, or Grantsville each month.
I've tried to simplify, but I still don't relate.
In its press release, the FOMC noted that the economy may still be contracting, but that it's not happening with the same speed as in prior months. Household spending is stabilizing and financial markets are "easing".
Nevertheless, threats to the recovery are everywhere with the following items on the Fed's short list:
- The growing ranks of unemployed workers
- The reduction of housing wealth nationally
- Reduced inventories and investment from business
Furthermore, the FOMC fingered today's inflation levels as too low to support economic growth. This justifies the Fed's plan to hold the Fed Funds Rate near zero percent "for an extended period".
For home buyers and refinancing homeowners, today's press release was not favorable.
After the Fed's announcement, stock markets rallied on the idea that the worst of the economy really is over and that led to a broad bond market sell-off. Mortgage rates spiked in response, adding as much as 0.125 percent, in some cases.
The FOMC's next scheduled meeting is June 23-24, 2009.
There, I feel better now !
So having said all this, and not having moved forward, LET ME TRY THIS !!
IN TOOELE UT, HOMES ARE AVAILABLE, INCENTIVES ARE PLENTIFUL, AND INTEREST RATES ARE NEAR AN ALL TIME LOW! NOW IS THE TIME TO BUY !!!
If you would like to see those 550 + Condos and houses for sale click on Tooele Homes For Sale.
If you want to know how much they are worth, how to buy them, what to look out for, why you need representation, who you might want to borrow the money from, and where to go for the best Real Estate deal for your situation, then visit our website @ Tooele Real Estate. Or just call us at 435-840-5029.
We love to talk about Tooele Valley and Real Estate.
Source
Parsing the Fed Statement
The Wall Street Journal Online
April 29, 2009
http://online.wsj.com/public/resources/documents/info-fedparse0904.html