Yesterday it was again all about the USD. Fed Chairman Bernanke signaled that US interest rates will stay at close to zero for some to come and while he gave lip service to a strong dollar he did not promise any concrete steps to support it. Essentially he indicated no possible danger from  inflation ensuing as a result these low interest rates. As if to underscore Bernanke statement that inflation is not a threat the Producer Price Index (PPI) that came out today indicated that seasonally adjusted it rose in October by only 0.3%, despite the rise in food & energy costs. This follows a drop of 0.6% in September & against an expectation of an increase of 0.5%.

In the real estate sector, new US housing starts in October fell to their lowest level in six months, while the percentage drop was the largest since January. But, while this decline is disappointing as its crucial part for the overall recovery of the economy the decline should not have been entirely unexpected as buying was abating in anticipation of the possible end of the Federal tax credit for buyers of new homes.

As to jobless numbers, those that were filing for new applications for jobless insurance was unchanged over the last week but the four week moving average dropped to its lowest level in a year

This is all good news for buyers and sellers of Morris Plains NJ homes.  Buyers will still have time to lock in lower rates, take advantage of the tax credit, and the inventory of affordable homes.  Sellers will see a slow down in the decreasing values of their homes.  Lower interest rates mean buyers will have more buying power,  and will be able to buy more expensive homes.  The one thing the current homeowners should be aware of is that as soon as interest rates go up thier home will be worth less.  So if you are contemplating selling your home do it sooner then later or risk losing out.  When interest rates go up buyers will lose buying power.  Those buyers will have to go else where to buy afordable homes.

There are 30 homes for sale in Morris Plains today, we have an absoption rate of 5 months.  3 Homes have come up for sale, one at 16 AE Foxwood Drive.  It is a 5 room 1bed 1 bath Condo and is listed at 256,000.  15 Franklin Place is a 7 room 3 bed 2 bath colonial and priced at 484,000.  253 Mountian Way is an 11 room 4bedroom 4 bath Custom style home priced at 599,000.

The Morris Plains Police Department welcomed two new patrolmen.  Residents Dan Gallagher and Peter Rolph they were sworne in  during September.   We wish them well.  Its nice to know the sons of Morris Plains are keeping watch.

Congratulations to Anne Benson.  Anne was recognised for her long time servce to the Ameican Red Cross.  Since 1960 has been a volunteer for the Morris Area Community Blood Program.  She still organises 13 drives a year between the  Morris Plains  Presbyterian Church and the Mt Kemble Fire House.

The Morris Plains Holiday Tree Lighting Ceremony will be held Decmber 5th at 5:45 at the Merchants Block.  If the weather is ba d it will be held at the Community Center.  The Menorah Lighting will be on December 13th at 6:00 pm.

Congratulations to Hal and Rita Birmingham and Dan and Helen Young on their 50 wedding anniversaries.  Props go out to Ed and Vivian McCormack on the celebration of their 60th anniversary.

6 Responses to “US Interest Rates to Stay Low, Lower Unemployment”