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WASHINGTON – – Interest rates are likely to remain low into 2011, Federal Reserve policymakers hinted this week in at least two presentations. These indications came one week after the Fed shut down its program to buy mortgage-backed securities, which had kept rates at or near record lows in recent months.

In a speech Thursday, Fed Governor Daniel Tarullo said, “The relatively modest pace of recovery, the continued high rate of unemployment, subdued inflation trends, and well-anchored inflation expectations together suggest that the need for highly accommodative monetary policies will not diminish soon.”

Likewise, Donald Kohn, Fed vice chairman in a speech in San Francisco, said the Fed would raise rates, “in due course,” but he also noted that low rates “help offset the lingering restraining effects on economic activity and prices.”

So far, rates have risen modestly, but analysts speculate they will likely become much more volatile down the road.

“It’s an uncertain type of market,” says Keith Gumbinger of HSH.com.

Michael Fratantoni, vice president of research and economics for the Mortgage Bankers Association, predicts that the Fed will have created a situation where there are days or weeks of low-rate opportunities, and other days and weeks when rates rise significantly.

WASHINGTON – April 13, 2010 – U.S. taxes can be offset by a number of real estate-related credits and deductions, and the IRS offers information on each.

Karen Russell, real estate industry liaison for Georgia, and in this instance, Florida as well, compiled a list of educational documents for the real estate industry to share with homebuyers and sellers.

“I am sharing the following links regarding credits available to first time homebuyers and long-term homeowners wishing to replace their primary residence,” Russell says. “This information can be printed and placed for easy viewing” by interested buyers and sellers.

Energy Incentives for Individuals: http://www.irs.gov/newsroom/article/0,,id=206875,00.html

Seven Facts about the Non-business Energy Property Credit: http://www.irs.gov/newsroom/article/0,,id=214979,00.html

First-Time Homebuyer Credit: http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Seven Important Facts about Claiming the First-Time Homebuyer Credit: http://www.irs.gov/newsroom/article/0,,id=202222,00.html

Five Tips About the First-Time Homebuyer Credit Documentation Requirements: http://www.irs.gov/newsroom/article/0,,id=219518,00.html

Ten Important Facts about the Extended First-Time Homebuyer Credit: http://www.irs.gov/newsroom/article/0,,id=215827,00.html

© 2010 Florida Realtors®

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