The FED just cut the target rate to between .25% and 0% and said it will do all things necessary to keep mortgage rates and the cost of money low. It will likely keep the target rate at this level for quite some time. The FED will also be aggressively buying mortgage-backed securities and does not appear to be concerned with inflation. (Source: CNBC)
My simple advice with regard to real estate: Buy! Buy! Buy!
Upsize! Do not sell and/or downsize for the next few months. From a cyclical perspective and in light of the posturing of the FED, the market from a
seller's perspective may look better in 3 or 4 months as mortgage rates are likely to decline, thus helping to stabilize prices. Again, I must stress - as I have in the past - that I am not overly optimistic with respect to a quick turnaround. I am looking for a bottom and then a very gradual uptick in prices and sales volumes.
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