Blog Articles

All the latest news articles and market trends of the Seattle Real Estate Market. If it is happening in Seattle it is happening on the Stroupe Group.

Recent Drop in Interest Rates Give Buyers Back Confidence

Federal Reserve Board Chairman Ben Bernanke announced a one-quarter percent drop in interest rates as an attempt to keep the country out of recession. This is the 3rd cut in the last 3 months bringing the percentage down to 4.5 percent.

“Economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending. Moreover, strains in financial markets have increased in recent weeks,” the Fed said in a statement explaining its decision to cut rates again. The three rate cuts ordered thus far “should help promote moderate growth over time,” the Fed added.

Although equity investors had a hard day on the market based on an expected larger cut and the Dow Jones plunge of 200 points, home buyers and sellers are now seeing some relief from the recent downturn in the housing market. Expectations from this rate reduction is a boost in spending and economic activity from consumers.

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