Key Interest Rate As Low As It Can Go

The following article is describes another of the recent economic indicators that should be very positive for the already highly favorable San Antonio mortgage lending market. It should be encouraging for both home buyers and sellers.

Daily Real Estate News December 17, 2008

Key Interest Rate as Low as it Can Go

The Federal Reserve has lowered its benchmark federal funds rate to a range or zero to 0.25 percent and said it would likely keep rates low for an extended period."The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability," the Fed said.

The Fed also said it was prepared to purchase more debt issued or guaranteed by Fannie Mae, Freddie Mac and other government-sponsored mortgage agencies. And it said it is considering purchases of longer-term U.S. Treasury debt."The focus of the committee's policy going forward will be to support the functioning of financial markets and stimulate the economy through open market operations and other measures that sustain the size of the Federal Reserve's balance sheet at a high level," it said.

Michael Woolfolk, senior currency strategist, at the Bank of New York-Mellon, applauded the Fed’s approach. "We think it's the best possible move for the U.S. consumer and for the financial market," Woolfolk said.

Source: Reuters News, Mark Felsenthal (10/16/08)