Federal Reserve Board Reduces Rates By 1/2 Point

This is The second 1/2 point reduction in the same month. This means that the Fed Funds Rate went from 1.5% to 1%. This is the rate that banks charge on overnight loans. The last time the Feds Funds Rate was this low was back in 2003 -2004. Th last time this rate was lower was in 1958. This will hopefully cause banks to start lending to one another. To read the entire article and reason why The Fed did what it did today click on the Title of this post. In short This rate matters because it is meant to stimulate the economy! If banks will not lend to one another or give a loan to a business, the market comes to a halt. Sometimes it is important to talk about these "Snoring Issues", both to educate those that dont understand how truely important the Fed Funds Rate is to our economy, as well as making this blog an informative source of information for those that visit our blog. Most Real Estate Agents dont get this indepth about different interests rates and how they effect our economy and therefore the Real Estate Market Nationwide. Now then to clarify things a little more: Whenever the Fed Fund Rate is lowered does NOT mean that Intrest Rates for things like HOMES goes down. They could, but there is NO guarantee that this could happen. Infact, rates for homes could even go up.

Stephen Adams - Keller Williams Realty Realtor Of The Week - 10/17/2008

Featured Realtor

Stephen Adams Keller Williams Realty

"Hi, I'm Stephen Adams, with Keller Williams Realty here in Leesburg.

When you become my client, you don't just get a Realtor and a Consultant - You have an Ambassador: Someone who's going to represent your best interests at all times. That's an awesome responsibility that I do not take lightly. Your trust in my abilities to provide you with the best possible customer service and exceeding your expectations and needs is why I do what I do best.

Being with Keller Williams myself simply ensures that you get a Professional Agent backed by a Culture that Values Continuing Education and Advances in Technology. This virtually guarantees a win- win solution to the ultimate goals for each one of my clients: to get the best possible price, in the shortest amount of time, with the least amount of inconvenience to you and your families in buying, selling, and investing in real estate.

My thoughts on the real estate market. As most of us realize by now, the Housing Market has undergone a marked "Shift" in prices throughout the Northern Virginia. Though some zip codes have a longer average Days on Market than others, the consensus clearly is in the favor of buyers. Even though the media will have you believe that the market is at a standstill, the number of homes sold over The last 4 months has shown a definite increase in sales. Prince William County sold 3

times as many homes in September of this year (2008) than last year!

Fauquier County saw a 36% increase in sales in September. Even Fairfax and Loudoun County sold over 50% more homes in September of this year than last year. True, many of those properties that sold were "Distressed Sales", such as Foreclosures, REO's (Real Estate

Owned) and Short Sales. As a matter of fact, in Loudoun County, 20% of the 476 properties that sold in September were such homes. But ultimately, this should tell you one thing - Buyers are still buying and Sellers are still selling.

Whether your moving from a condo to a townhouse, or a Single Family Home back to a condo (or even an apartment), let me help to guide you into your new phase of living.

Email Stephen Adams