The interest rates have remained so low that investors are beginning to make riskier investments in the hopes of getting higher returns. Others are beginning to doubt that the Reserve will maintain its low interest rates when investors are taking such risks. However, Federal Reserve Chair, Janet Yellen, has stated that the Reserve isn’t going to raise interest rates until the economy is in a place of stability, and when the prices do begin to rise, they will do so at a 2% annual rate.
In Yellen’s own words, she says, “I do not presently see a need for monetary policy to deviate from a primary focus on attaining prices stability and maximize employment, in order to address financial stability concerns.”
Although some blamed the housing crisis on the fact that the Reserve didn’t raise interest rates fast enough in the mid-2000s, Yellen has stated firmly that she is against this belief. If the Reserve had raised interest rates too rapidly unemployment would have skyrocketed, and people would have fallen farther into debt. This is why Yellen says that the Federal Reserve will raise rates slowly and consistently, to avoid anything like this from happening.
With interest rates promised to remain low, home sales the highest they’ve been in three years and mortgage rates experiencing a steady decline, there really has never been a better time to call the top East Orlando real estate company, The Wemert Group, to find out what your home is REALLY worth.
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