The Federal Reserve says interest rates will not rise anytime soon despite worries from a number of economists. The Federal Reserve has kept interest rates at an all time low in the hopes that it would breathe life into the housing market by allowing homeowners to take advantage of mortgages at a lower interest rate. Many banks are advertising these low rates in the hope of unloading houses they have on hand from homeowners who have defaulted on their mortgages and subsequently went into foreclosure.
However, many worry the low interest rates will lead to inflation and drop the value of the dollar, which could damage the economy and put us into a period of backsliding into another recession.
Another complaint comes from depositors who are angry that these low interest rates from the Federal Reserve are keeping their interest on savings accounts low, yielding little return.
The outcry for higher interest rates so our economy can stabilize could force the Federal Reserve to raise the interest rates so anyone looking at buying a home or refinancing may need to now since there are many opponents of these record low interest rates.
Others feel interest rates need to stay low until the job market can catch up and Americans can spend again, or even afford higher interest rates. The Federal Reserve feels there is no need to rush for higher interest rates because the Federal Reserve has the tools to fight potential inflation.
So, despite argument for both sides, the interest rates for our nation are going to remain low at least for the short-term. With interest rates still very low now might be the time to jump at a car or home purchase. Before making any final decisions it is always a good idea to look at one’s financial situation. Some will benefit from looking up Craigslist Miami Used Cars as this will help them get a much better idea of a price point for a used vehicle. Sadly, some go into the process blind and end up paying way too much for a car with a high interest rate loan.