Interest Rates Expected to Stay Low

A recent Washington Post article quoted Fed Chairman Ben Bernanke as saying "the federal funds rate is likely to remain exceptionally low for an extended period." He has said the same thing in every statement for the last 14 months. That is about as clear a signal as possible about where Ben stands on long term interest rates. Rates will continue low until things change and at some point things will change, for the better. At this time, however, it looks to me that the Fed Chairman is saying out economy hasn't yet recovered enough to allow interest rates to push higher. We have a ways to go before our economy swings into more positive territory. We are seeing some tentative early swings, but at the present we are still struggling a little. When change comes, it will come quick and interest rates will adjust quickly as well. I blogged recently abou the Four Windows of Opportunity. This window of opportunity - low interest rates is still open. For now.

If you know of anyone interested in locking in a low interest rate on a new home purchase, give me a call.

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