Fed leaves interest rates unchanged

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At its meeting today, the Federal Reserve board voted unanimously to leave short-term interest rates unchanged despite the choppy waters some financial markets are moving through. The Fed has left the federal funds rate, currently 5.25 percent, unchanged for over a year.

This is good news for well-qualified buyers currently searching for a home, as it means the cost of financing will not likely increase in the immediate future. However as time goes by and the sub-prime meltdown continues, lenders may raise rates to maintain profit margins. If you’re shopping for a house, get a rate lock and move quickly to get your offer accepted.

Yes, we’re in a buyer’s market – but think carefully whether haggling with the sellers over a new hot water heater is really worth paying a higher interest rate over the life of your mortgage. In the worn and tired words of Larry the Cable Guy, “Git ‘er done!”

Source: Associated Press

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