Fed Extends Historically Low Interest Rates

April 28th, 2010

Earlier today, Wednesday April 28th, the Federal Reserve announced that they are once again keeping bank rates near zero, continuing the trend of historically low rates. The statement released today was cautiously optimistic, stating that "economic activity has continued to strengthen and that the labor market is beginning to improve.”

The Federal Reserve Chairman Ben Bernanke announced that the economic conditions will “warrant exceptionally low levels of the federal funds rate for an extended period." Keeping interest rates low is expected to help spur the recovery.

Some economists anticipate this message changing in the not-to-distant future. When this occurs, we will likely see an end to the historically low mortgage rates that have benefited people looking for new home loans & people who wanted to refinance their current mortgages.

The rates are low right now but no one knows how long it will last. If you have been contemplating buying a new home or refinancing your mortgage, you may want to act now to take advantage of the current historically low rates.

Take Advantage of the Benefits of Refinancing While Rates are Still Low

Refinancing your home with a lower interest rate could save you thousands over the course of your loan. It can also make your monthly payments more manageable by extending your remaining loan term. With interest rates likely to rise in the future, another benefit of refinancing would be to reduce the risk of an adjustable rate mortgage by stabilizing the monthly payments using a fixed-rate mortgage.

First-Time Home Buyer $8,000 Tax Credit to End This Week

As we mentioned in the previous blog entry, if you are a first-time home buyer (have not owned a home for 3 years) you have very little time to take advantage of an $8,000 tax credit to buy your home. The tax credit, initially set to expire at the end of November 2009, has been extended to this Friday, April 30, 2010.

Highlights of First Time Home Buyer Tax Credit:

Additionally, a $6,500 credit has been added for existing homeowners who buy a new residence if they have lived in their current one for at least five consecutive years in the last eight years.

So if you are in the market to refinance or get a new home or equity loan, now may be the time since these record low rates won't last forever. Act now to find a lender and get free expert advice in your area!

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