FHA Book

FED Expects Rates to Stay Steady for Rest of ‘07

The Chairman of the Federal Reserve plans for rates to hover around 5.25, but fears the possibility of the housing slump worsening, MSNBC.com reports.

Another risk is that the housing slump could turn out worse than expected, sapping consumer spending and possibly causing overall economic growth to be weaker, Bernanke said.

Housing starts rose slightly last month, the government reported Wednesday, but building permit activity, a sign of future construction plans, sank to its lowest rate in 10 years, signaling further weakness in the listless sector.

Soooo, if you are looking to be a first time homeowner….Take out an FHA loan, buy a house, have low interest rates, live happily ever after.