NOTE: Compare this article to "Mortgage Rates Could Soar, Predicts Economist" from earlier today and understand that near-term rates will remain low but eventually rates will rise dramatically as both the media and the government 'fess up to the groundswell of inflation that is taking place. As rates rise, so will the prices of homes and condos...and all fixed assets!
From Realtor Magazine Online, Daily Real Estate News March 7, 2008
The Federal Reserve may need to keep a lid on interest rates for a significant length of time if the financial markets continue to be under duress, New York Fed President Timothy Geithner told the Council on Foreign Relations.
"If turbulent financial conditions and the associated downside risks to growth persist, monetary policy may have to remain accommodative for some time," he said.
Geithner also said that dealing with growth risks and rising inflation "requires a fine balance" but added "if the medium-term outlook for inflation deteriorates significantly, the Federal Open Market Committee will move with appropriate speed and force to address this risk."
Source: Reuters News, Pedro Nicolaci da Costa and Steven C. Johnson (03/06/08)
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