The Federal Reserve Bank just released the minutes of its July 2016 meeting wherein they decided not to increase interest rates. The minutes contained 14 pages of financial mumbo jumbo that basically said, no rate increase.
Despite the Fed dangling the carrot of an increase, we think it is unlikely that there will be any increase this year. After all, the money center banks, pregnant with interest-rate- sensitive derivatives, would get hammered.
And, as it is those banks that are the shareholders of the New York Fed and are really Janet Yellen’s boss, one can understand the reticence.
That said, we have an election coming up in just three months and that could change everything, regardless of who wins.
So, our suggestion relative to real estate is to “strike while the rates remain low.” To do that, all you need to do is give us a call and we will be happy to let you know how affordable your purchase could be with these historically low rates.