Monday, March 31, 2014

Realty Executives of New York: Interest Rates

So we've recently begun reading The Wall Street Journal, and having received this mornings issue we took a look at the "Money & Investing" Section.  Today we spotted a great article about the recent decline in the rates and wanted to share this information with our followers.  As a real estate agent a decrease in rates is great for your business.  This means that more people will flood the market in search of properties to purchase while the rates remain low.  So what was discussed in this article.
According to E.S Browning, "Parsing the Surprise Drop in Interest Rates," the reason for the fall in the rates is the Federal Reserves easing back on policies.
These low rates are surprising. But what do they mean?  Let's look at Economic Growth.  "Many economists think foreign growth is improving and the U.S. data were distorted by bad weather...Interest rates are sensitive to inflation, so low inflation has contributed to low rates."

So now the question is- what will bring the rates up? Two things. Inflation or a sudden drop in growth.

No comments:

Post a Comment