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May 09, 2007
Miami Florida Real Estate Update
As expected, the Federal Reserve has decided to keep rates where they are at. In the statement released today, it mirrored what was said in its’ previous statement. Key factors that influence the Federal Reserve are inflation and economic growth. There is sentiment that the economy will recover quicker but will bring along inflation with it. The statement includes a cautionary stance the Fed is taking. It will watch the key indicators, including a sluggish employment report and energy increases.
If you are a prospective home buyer, it is now the time to lock in the rate. As the stock market increases, look for an increase in mortgage rates in the short run.
For more information regarding the above web blog, please call Dean or Bonnie Isenberg at 305-936-2489 / 800-819-5466 or visit us on-line at A-Realtor.Com
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Posted by South Florida Realtor at 03:53 PM
Todays News Updates
The last time our “Prime Rate” was as high as it is now was February of 2001. At that time it was 8.5%. Today’s prime rate is 8.25% and over the past 6 years, it has grown to this level via increases set forth by the current and previous Fed Chairmen.
Tomorrow, we will see if the Fed will leave the rates as they stand now or, begin cutting them. According to many prognosticators, it is too early for the Fed to cut rates now. However, they did change their stance and communication last month by insinuating cuts would be forthcoming if the economy continued to show slowness. As we had seen last week, we did have a sluggish employment report. This statistic clearly would show a cut is necessary and, our economy is in fact, slowing. But has it slowed enough to cut rates?
Certainly, from the last 3 weeks of a hot stock market, our real estate industry has slowed significantly and cuts are needed. We also need more tax relief and more insurance relief. However, there are many great deals in the market and interest rates are still extremely good. The “par” rate for a typical 30 year mortgage is still in the very low 6% range. I am also closing many interest only loans in the 6.5% range too.
For more information regarding the above web blog, please call Dean or Bonnie Isenberg at 305-936-2489 / 800-819-5466 or visit us on-line at A-Realtor.Com
Click Here To E-Mail The “I-Team”
Click Here To Request More Information About The Above Web Blog
South Florida Real Estate Information
Sell Your Pre-Construction Property .COMmission Free
Thank You !
Posted by South Florida Realtor at 03:46 PM