I am a somewhat casual observer of the stock market, and last week was one of the most volatile weeks ever seen. How could one not be transfixed (and concerned) about what happened. It seemed like every day the market reacted to any and all economic and financial news – no matter how relevant.
The biggest surprise, however, was in Tuesday’s FOMC statement was that the Fed currently anticipates that economic conditions will call for the Fed funds rate to remain exceptionally low through at least the middle of 2013. This is an unprecedented statement.
The Fed also downgraded its forecast for economic growth, saying that it will be “considerably slower” than previously expected at the last FOMC meeting on June 22. Slower economic growth with few signs of higher inflation will make it more difficult for the labor market to recover, but it is a favorable environment for mortgage rates.
For more information on YTD Main real estate sales, by local community within the greater Portland area, visit: Maine Communities on our website.
As the real estate market continues to struggle to improve, lower mortgage rates are a welcome sight. Rates below 4% are currently available in Maine. Some of the lowest rates ever! Coupled with lower home prices, the market could not be better positioned for buyers to make once-in-a-lifetime purchaes.