I don't know how things look in your neck of the country, but things here in Virginia do appear to be better than other parts of the country (and for that, I am thankful). As far as I can tell, the economy hasn't caused the massive layoffs that the Rust Belt is seeing. One area that I do see troubled is the housing market. The housing prices here have fallen off fairly sharply and that is good news to new buyers. However, it isn't such great news to those of us relatively new(ish) homebuyers who bought just before the so-called housing bubble burst.
Recently, the Fed cut a key rate to practically the bare bones... the Fed Funds rate now stands at between 0-.25%. Good news for you or bad? It depends on your situation. If you are in the market to buy a home, then rejoice! Now might be the time to refinance for some, but if you are in the same boat as me, maybe not.
I lamented the Fed rate cut in an article published over at Associated Content. While the Fed has cut the rate to record lows, for those who have just seen their equity swallowed whole by the housing market monster, the news isn't quite as welcome. Watch your savings rate APY too... the lower the Fed Funds rate goes, the lower the amount a bank will give you as interest on your savings or checking account.... so I am waiting for a rate cut there too.
Now, however, may be a good time to maximize your savings! Look into FDIC insured online banks like ING Direct, HSBC and many others. Check with your own bank too, as many do offer online savings options at a higher rate versus getting to say hello to your favorite teller.
Link to article: Fed Cuts Rate to Lowest in 95-Year history
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