The housing market continues its slow recovery without the aid of the now expired tax credit. Sales are slower but growing, and prices remain on par with last year’s levels. Interest rates also hit a new historic low, a major factor in helping keep mortgage payments low, which is expected to spur sales.
The economy shone a bit brighter in September. It grew faster during the second quarter than expected, and companies continued to hire. Experts believe there is now less risk of a double-dip recession.
Now, the Federal Reserve Board’s challenge is not if the economy will grow but how fast. Driven by concerns that inflation is low, the Fed began purchasing treasury securities on a small scale. It used this tactic at the height of the recession to help draw down the interest rate and boost spending.
Experts anticipate both the economy and the housing market will continue their path on the way to a complete recovery. This march back up provides excellent opportunities: an ample selection of homes, affordable prices, and historically low interest rates.