Yesterday the Federal Reserve made a substantial move to increase bank lending.  The Federal Bank bought up $600 billion in U.S. debt, which drives down interest rates as a result.

Because of the move, we should see mortgage rates drop to 3.9% or so near-term, and 3.75% or lower within months.

The move addresses the issue of making cheap money available, but the unemployment rate needs to drop for renters to turn into home owners.

This infusion, along with other recent moves by banks and the SBA has increased small business lending – which will decrease unemployment and allow more people to become home owners.

About the Author:
Michael Blount Jr is a Realtor and the Broker of Blount Properties, living in The Woodlands, TX.  Michael is knowledgeable in both residential and commercial real estate and studies the market and trends to better serve his clients.  Michael serves the greater Houston metro area.  For more information – visit www.BlountUSA.com or search for Blount Properties on FaceBook.