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Fed leaves rates untouched – Translation?

Regarding yesterday’s Federal Reserve meeting, here is an excerpt from Goldman Sachs to help you build and manage your Real Estate empire going forward:

Link to Article at GS Asset Management

The Federal Reserve (Fed) left interest rates unchanged at the September meeting, citing recent global economic and financial developments that could restrain US economic activity and put further downward pressure on inflation.

  • We view the Fed’s statement as dovish, lowering the odds of a rate hike in the near-term. The Fed focused on potential negative effects of global economic and market developments, and lowered its inflation forecasts. We view this as a dovish statement that potentially lowers the probability of a rate hike in the near-term. The market is pricing in roughly a 20% probability of a rate hike at the October meeting and a 50% probability of a hike by the December meeting, based on Fed Fund futures data as of 9/17. The timing will depend on developments in financial conditions and economic data, but we believe an October rate hike is now unlikely and the December meeting is a toss-up. We think this could dampen market volatility in the near-term, though uncertainty about Fed policy could lead to more volatility as the December meeting approaches.

What does this mean for you and your real estate investments?  As a buyer, money is still “on sale” as mortgage rates continue to stay at historically low levels.

Put more simply, whether buying a $300,000 condo, an $800,000 house, or a $2,000,000 apartment building, your mortgage costs will most likely be lower now than after the Fed begins to raise rates.  Call me today so we can begin building YOUR real estate empire!

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