The Federal Open Market Committee (FOMC) has again slashed interest rates, this time .75% in an attempt to restore confidence and, more to the point, assist banks and business as they attempt to recover from a credit crisis. The irony to this point is that mortgage rates and the prime rate have been plummeting along with the fed funds rate cuts, but credit is still a bit hard to come by. With the cut in rates this month, the Fed is indicating to banks that it’s safe to release a bit more money to business and individuals in the form of mortgage and business loans.

What this means for would-be homebuyers is that it is a GREAT time to buy real estate. Despite what the industry analysts are saying, the only real problem in the real estate industry right now is for those who are trying to sell their homes or commercial properties. Even with that, there are still “pockets” around the country where real estate is not in the downward spiral that analysts are noting. In Maryland, for example, where employment figures are good (and will likely remain so due to the world’s largest employer being right down the street in Washington, DC), the housing market has merely experienced a downturn. Doom and gloom, in my opinion, is a bit of an overblown description of what’s going on locally.

If you’re looking to buy a home, however, now is the best time to do so. Interest rates are as low as they were during the hottest real estate market a few years ago and prices have dropped significantly enough to make it a buyer’s market.

Tags: business loans, credit crisis, federal open market committee, fed funds rate, housing market, mortgage rates, prime rate

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