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Fed moves likely to keep mortgage rates near historic lows for years

The US Federal Reserve also intends to continue purchasing mortgage-backed securities, Federal Reserve Chairman Jerome Powell said Wednesday. 

BY PATRICK KEARNS | June 10, 2020

The U.S. Federal Reserve’s June summary of economic projections released Wednesday shows interest rates near level zero lasting the rest of this year and the next couple of years to support economic recovery.

That could mean the record low mortgage rates the real estate industry is seeing will continue.

“What the June [summary of economic projections] shows is a general expectation of an economic recovery beginning in the second half of this year and lasting over the next couple of years, supported by interest rates that remain at their current level near zero,” Federal Reserve Chairman Jerome Powell said Wednesday during a press conference.

“Of course, my colleagues and I will continue to base our policy decisions on the full range of plausible outcomes, and not on a particular forecast,” Powell added. “This risk management approach is the best way we can promote our maximum employment and price stability goals in these unusually uncertain circumstances.”

No rate hikes — along with the continued purchase of mortgage-backed securities — could mean interest rates for a 30-year-fixed-rate mortgage stays near 3 percent, or record lows, according to National Association of Realtors Chief Economist Lawrence Yun.

“The Federal Reserve’s view that a rate hike will not occur for three years is a signal to the market to expect an all-in accommodative monetary policy,” Yun said. “It is also very likely that the Fed will be aggressively purchasing mortgage-backed securities behind the scenes.”

“That means mortgage rates will be at or near 3 percent and near record lows for an extended time.”

Yun doesn’t believe consumer price inflation will be an issue with the amount of money printing, adding that it’s the right policy for the current economic climate.

Credit: Inman News

What does this mean to us? 

First, it may a good time to re-finance. Second, Real Estate will continue to be one of the best investments available for years to come.

Don’t hesitate to call us for evaluations of your home’s value or to tour homes on the market you have interest in.

We are here for you, and Alisa always answers her cell phone, 530-559-4871.

 

 

It’s getting a little warm! This is June after all, and who wants to slave over a not stove? Cucumbers are in full glory…so how ‘bout a yummy, super simple Cucumber Salad. From our friends at Kitchn.

The Ridiculously Good Cucumber Salad I Keep Coming Back To

BY KELLI FOSTER

Credit: Kelli Foster

Every year as the weather warms and summer inches closer, I make a mental list of the seasonal favorites I absolutely have to make. My list always includes classics like burgerslemonade, and buttery corn on the cob, and fresh fruit desserts like strawberry shortcake and blueberry crisp. But at the very top of the list is always my mom’s creamy cucumber and tomato salad. It was a staple of my childhood, and so to me it’s what summer tastes like. 

Mom’s Cucumber & Tomato Salad

My mom has been making this salad for as long as I can remember. It was a summer tradition in our house — not a special-occasion tradition, but a weekly (and sometimes nightly) one. No matter what she served as the main course, this salad was always eaten up first. We devoured every fresh and creamy bite, going back for seconds, then thirds, vying for the very last slices of cucumber and chunks of tomato in the bottom of the bowl and spooning them onto our plates along with every last drop of the creamy, tangy dressing. In fact, it’s the punchy tang of that light and creamy dressing that’s kept me coming back all these years.

Yes, Mayo Really Does Make the Best Dressing for Cucumber Salad

This salad is somewhere in between a tangy, vinegar-based cucumber salad and a rich and creamy one made with sour cream dressing. And that’s all thanks to the mayonnaise-based dressing. Mayo has a delightfully sweet tang that’s different from the tang of sour cream or Greek yogurt — and a little goes a long way. This salad needs just a little bit of dressing to coat the vegetables. When left to sit before serving, the liquid from the cucumbers and tomatoes thins the dressing and mellows it slightly.

How to Make My Mom’s Cucumber and Tomato Salad

My mom isn’t really one for following recipes, a quality I was reminded of when I asked her about the specifics of this dressing. “It depends on the amount of cucumber and tomato,” she told me. “Just a big spoonful of mayo, a pour of red wine vinegar, and a small splash of milk to taste. I’ve never measured it.” If you’re skeptical about the milk, I was, too — until I learned that it boosts the creaminess factor and works to thin the dressing without adding any extra acidity. 

To create this salad at home, whisk together 1 heaping tablespoon mayonnaise2 teaspoons red wine vinegar, (an optional) 1/2 teaspoon milk (preferably whole or 2%), and a pinch of salt and pepper in a large bowl. Add 1 large peeled and thinly sliced cucumber and 1 large (or 2 small) ripe, chopped tomato and toss to coat. Let the salad sit at least 30 minutes (although the longer the better) before serving

 

 Happy Trails, until we meet again 🙂