Fed leaves key interest rate unchanged, cites improvement in housing

Release Date: September 23, 2009

Information received since the Federal Open Market Committee met in August suggests that economic activity has picked up following its severe downturn. Conditions in financial markets have improved further, and activity in the housing sector has increased. Household spending seems to be stabilizing, but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit. Businesses are still cutting back on fixed investment and staffing, though at a slower pace; they continue to make progress in bringing inventory stocks into better alignment with sales. Although economic activity is likely to remain weak for a time, the Committee anticipates that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will support a strengthening of economic growth and a gradual return to higher levels of resource utilization in a context of price stability.

With substantial resource slack likely to continue to dampen cost pressures and with longer-term inflation expectations stable, the Committee expects that inflation will remain subdued for some time.
In these circumstances, the Federal Reserve will continue to employ a wide range of tools to promote economic recovery and to preserve price stability. The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period. To provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve will purchase a total of $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt. The Committee will gradually slow the pace of these purchases in order to promote a smooth transition in markets and anticipates that they will be executed by the end of the first quarter of 2010. As previously announced, the Federal Reserve’s purchases of $300 billion of Treasury securities will be completed by the end of October 2009. The Committee will continue to evaluate the timing and overall amounts of its purchases of securities in light of the evolving economic outlook and conditions in financial markets. The Federal Reserve is monitoring the size and composition of its balance sheet and will make adjustments to its credit and liquidity programs as warranted.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Donald L. Kohn; Jeffrey M. Lacker; Dennis P. Lockhart; Daniel K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.

Source:http://www.federalreserve.gov/newsevents

What Exactly is Escrow?

Escrow is a service in which a neutral party handles documents and monies, related to the real estate transaction for a fee.  In escrow, all parties involved give their instructions to the escrow company which holds all kinds of documents until these instructions are completed.

Why do I Need Escrow?

Whether you are the buyer or the seller, you want assurance that no funds or property will exchange hands until all the instructions have been followed.  Escrow will guarantee this.

The Escrow Instructions

Read the instructions carefully and make sure that they are accurate and complete.  Any questions should be directed to the escrow officer.  And remember, when you have legal questions, ask an attorney.

It’s Time to Close

When all instructions of all parties to the escrow have been carried out, the closing can take place.  All funds are collected, transferred to title company and all costs are paid.  Title is then transferred. 
If you have any questions on title insurance please a Title insurance company or your attorney.

“There is never enough time to do everything, but there is always enough time to do the most important things.”
Pg 35, ‘Obey the Law Of Forced Efficiency’. Eat That Frog.

What’s keeping you from buying a house right now?

Lao-Tzu Quote

He who controls others may be powerful, but he who mastered himself is mightier still.  Lao-Tzu

 

I really enjoy these quotes. I learn from them. Feebacks?

Bill Gates Quote: How True Is It?

If you are  in business and not on the internet, it simply means you will be out of business.  (Said 10 years ago)

It is so true. It may take a while, but surely everything is happening online now. Ordering lunch, buying tickets for show and travel, applying for jobs, renewing DMV fees etc.  The most basic things are going online.  Look at what social site like Facebook and You Tube are doing and what impact they are having on our contacts and social behaviours. It may take a little longer, but surely Internet is a MUST.

PS: Land phone lines are on thier way out. What an impact by the internet. Snail mail is taking a big hit business due to email!