This month, the Federal Reserve announced a new Quantitative Easing initiative. In this plan, the Fed buys up large numbers of U.S. Treasury bonds on the open market, pushing down long-term interest rates. One hope is that mortgage rates will also fall. The Fed's actions earlier this year already pushed mortgage rates down to 100-year lows.
Could rates go lower? Maybe, or maybe not. The Fed does not directly control rates, and it's hard to predict how the market will react. To some extent, the Fed is hoping that rates will eventually rise, signaling that investors see growing inflation - the product of a growing economy.
Quantitative Easing will have little direct impact on Tallahassee home sale prices. Prices are the function of supply and demand, and with an overabundance of foreclosures, oversupply will keep prices from rising in tallahassee for a few years.
For Tallahassee buyers, super-low mortgage rates plus low prices make for a great buying market. Contact us at http://www.tallahome.com/ for professional Tallahassee mortgage lenders and up-to-date mortgage rates.
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