Low Fed rates mean there is still value in luxury investments!
Posted Tue Aug 12 20:40:00 UTC 2008
The Fed’s decision this week to keep the short term rate at a low 2% seems to give some reassurance that the government is willing to put some teeth into its fight against inflation (click here to read Chris Isidore’s CNN Article). Wall Street cheered, but what of Chicago’s Astor Street and the people who hope to buy a luxury home there?
Well, the Federal Reserve is worried about both a housing slump, sagging economy and credit crisis, plus higher prices at the pump and the grocery store.
With one of the most heated elections anyone can remember just picking up steam, I doubt the Fed will move rates either direction before November. Their first post-election meeting is in December.
So for those who want to buy on Astor, Michigan or Lakeview? It’s a great time. The Fed is keeping the price on money at historic lows, and if you’ve got good credit and a downpayment, you will be rewarded with a fantastic rate. Good loan products are still out there, we’ve just moved to the novel approach of only offering them to those most likely to repay them!
Posted By: 
John D’Ambrogio
