For the last 7 years, the Federal Reserve has kept interest rates low to spur business and consumer borrowing and risk taking. However, with reports showing the economy has gained strength and recovered, rumor has it the Fed will begin to raise rates.
Janet L Yellen, Federal Reserve chairwoman has hinted that a decision on raising rates may happen this week when the Fed’s policy-making committee meets. Yellen recently talked about raising rates would be “a testament, also, of how far our economy has come in recovering from he effects of the financial crisis and the Great Recession.”
The latest economic data, including a favorable jobs report in November, make it almost certain for the decision. The findings in the report show 211,000 jobs were added in November and the current unemployment rate is 5 percent.
Should the rates be raised, experts expect a gradual increase and should not have any effect on home buyers looking to purchase homes for sale and condos for sale who will still be able to secure rates for loans that by all standards remain historically low. More on this here..
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