Raleigh Residential Real Estate – Good news for the Raleigh, NC Housing and Mortgage Markets – the Federal Reserve lowers its target for Federal funds to 4.5% and the Economy grew by 3.9%

Raleigh Residential Real Estate – Good news for the Raleigh, NC Housing and Mortgage Markets – the Federal Reserve lowers its target for Federal funds to 4.5% and the Economy Grew by 3.9%

Here is what the Federal Reserve said in their press release today:

“Economic growth was solid in the third quarter, and strains in financial markets have eased somewhat on balance.  However, the pace of economic expansion will likely slow in the near term, partly reflecting the intensification of the housing correction. Today’s action, combined with the policy action taken in September, should help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and promote moderate growth over time.”

You can read the press release here: Federal Reserve lowers its target rate

In addition to this good news, the Economy beat most analysts’ expectations with a third quarter growth of 3.9% on an annual basis. This represents the fastest growth rate since the first quarter of 2006.

However, investors and analysts remain wary that problems in the troubled housing market will spill over into the broader economy and suppress fourth-quarter growth. Read the full New York Times article here: Economy Grew 3.9% in 3rd Quarter.

The good news will not bring an immediate return to the Raleigh, NC housing marketplace, but it does offer hope that the mortgage and financial markets may continue to settle down and clear up some of the uncertainty.

This may help those considering buying or selling a home to more forward with their plans. I believe many potential buyers have been sidelined by recent events.

Be sure to take a look at the 3rd quarter home sales data and a Real Estate Market Update on the Poling Team website. Raleigh, NC Housing Market Update