Federal Reserve Planning to Stop Interest Hikes

This is good news: The Federal Reserve is indicating an end to interest rate hikes, which means that we can all look forward to less volatility in the mortgage interest market. It also appears that the Fed could be stopping rate hikes as early as mid 2006.

This should help out our housing market in the US. Prices have been moderated by the higher interest rates, but perhaps the "doom and gloom" of a housing market bust can be avoided. After all, we're all better off with a slow down in price increase as opposed to a quick stop and crash. And it continues to look as if prices are going up, but much more slowly in most markets. A small increase in our biggest investment is a nice thing, as long as we aren't outpacing the ability of average Americans to buy a home.

As the year develops, we'll have to see how the markets go. But for now, the news looks fairly low key and positive. And that's good for all of us.


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