The Federal Reserve Bank has voted to hold steady the Fed Funds Target rate at 0.00% to 0.25%. The Fed Funds target rate has been at 0.00% to 0.25% since December 16, 2008. The Federal Funds Rate is the interest rate at which private banks lend balances at the Federal Reserve to other banks, usually overnight. It is the effective interest rate banks charge each other for loans.
The Chairman of the Federal Reserve Ben Bernanke has supported the decision to leave rates unchanged at 0% for nearly 17 months in order to stimulate an economic recovery. The financial crisis of 2008 has resulted in unprecedented Federal Reserve intervention in an attempt to stave off a further financial meltdown.
This is good short term news for people buying property as it is likely to help keep home mortgage rates at near all time lows for a little longer.
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