Fed Announces: Interest Rates to Remain Low

Investors and potential buyers breathed a sigh of relief Wednesday when Federal Reserve Chair Ben Bernanke told Congress that interest rates are likely to remain low for an extended period. The economy, he said, "still requires support for recovery."

Investors see these low rates as a boon to a recovery of employment and business. Buyers obviously see this as a continued opportunity to lock in a great rate on a fixed loan which creates a stable payment for an extended period of time; essential for creating a financial plan for the future.

Bernanke’s announcement also helped soften the edge on the news that housing sales were down in January. With holiday spending, travel plans and modified banking hours I'm not sure this was unexpected, but hopefully not a trend.

I think a very telling indicator will be how the market reacts after the Homebuyer's Tax Credits expire on April 30th. We shall wait and see......