Interest Rates Will Continue to be Low Until Unemployment Drops

Fed Chariman Ben Bernanke

by Yvette Betancourt

As the end of the year comes near (according the Mayans, it's the end today), the Feds made the decision to continue to curb interest rates low as long as the unemployment rate remains above the 6.5 percent.

Sounds good right? but for how long?

Unemployment rate is estimated to drop below 6.5 until 2015 according the Feds.  sounds like 2013 and 2014 will be a the best time to get into the market for buyers, sellers and real estate investors.

So as we anticipate the decision of the "Fiscal cliff," government is doing their best to make sure the 2012 real estate market gain will continue to grow into 2013 and beyond.

Source: AGBeat

Jobless Claims Fall Sharply After Three Weeks of Increases

Workers line up at a job fair at the Crenshaw Christian Center in South Los Angeles in August 2011. (Michael Robinson Chavez / Los Angeles Times / May 3, 2012)

According the LA Times article, the Labor Department said that after three straight weeks of elevated readings, first-time jobless claims fell by a much bigger-than-expected 27,000 last week to 365,000.  

This news gives hope that the layoff trend is slowing decreasing and the increase of season work has increase job employment. As of March 2012, unemployment rate is 8.2%.

LA Times Article