Looks like the Interest Rate will remain at a record low
For months, consumers have pulled back on spending and borrowing. To try to stimulate economic activity, Fed policymakers are all but certain to keep the target range for its bank lending rate between zero and 0.25 percent at the end of their two-day meeting Wednesday.
That means commercial banks’ prime lending rate, used to peg rates on home equity loans, certain credit cards and other consumer loans, will stay around 3.25 percent, the lowest rate in decades.
Fed policymakers also will probably pledge anew to keep rates there for “an extended period,” which economists interpret to mean through the rest of the year and into part of 2010.
“We’re doing everything we can to support the economy,” Bernanke said recently. “We will try to get through this process. It’s going to take some patience.”
By holding rates so low, the Fed hopes to induce consumers and businesses to boost spending, even though banks are still being stingy about extending credit.
“The Fed will be guardedly optimistic,” said Brian Bethune, economist at IHS Global Insight. “We’re seeing initial signs of the economy moving toward recovery … (but) the underlying fundamentals are still weak.”
This low interest rate is good news to banks, but the savings are not really being passed to the home buyers because the banks have become very selective on who they lend to. It seems that the hope of the Fed is that the low rates will soon open the doors to lending options, but that decision is ultimately up to the banks. So in short, this record low interest rate will probably not result in YOU getting a lower interest rate on your loan unless you are a congressman (they seem to get them somehow). For the best rate on your manufactured home loan, call us today. We are both a lender and a brokerage firm, so we know the mobile home finance market from both sides.
