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Wednesday, July 21, 2010

Bernanke pledges to keep rates low for an “extended period”

Today Fed Chairman Ben Bernanke told Congress the economy remains “unusually uncertain” and he is prepared to take steps to keep the economic recovery going if things worsen.  With the short term lending rate at zero, I’m not sure how many more bullets the Fed has in its gun to spur leverage but the take-away from this is his commitment to keep rates low for an “extended period.”
 
That should bode well for real estate buyers in the near term and help with those who are looking to hedge against possible inflation (or hyper-inflation in some opinions) in the future.  In layman terms…you want to have a 4% mortgage on a property when rates go up and cost of goods and services go up too!  Why?  Mortgages are generally a fixed expense that does not rise when the cost of everything else goes up (including your income hopefully).

Right now, however, these historically low rates don’t seem to be getting personal and corporate borrowing ignited.  The government needs companies to leverage to build, innovate, expand, but most important of all…hire people!  Until employment increases we cannot see real growth… of course this is just the opinion of one businessman in the middle of the Pacific Ocean and his dusty old finance degree.

More at:  Bernanke comments today

Posted by Trevor Benn on July 21, 2010 at 08:28 AM
Real Estate News • (1) CommentsPermalink

Thursday, July 01, 2010

Tax Credit Extended

The Senate has just passed an extension of the closing deadline for the Homebuyer Assistance and Improvement Act which allows those who were under binding contracts prior to April 30th to close on the property prior to September 30, 2010.  the previous closing date deadline was June 30, 2010.

See more at:  Tax credit extension information

Posted by Trevor Benn on July 01, 2010 at 04:16 PM
Real Estate News • (1) CommentsPermalink
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