Earlier this month the fed said that they were going to hold interest rates at historical lows. So naturally borrowers were over joyed but who was forgotten were the people who are saving.

The Fed’s move was to make business and consumers look to investing in the economy in the form of leverage by buying expensive items like cars and houses for consumers or new systems and equipment for businesses.

The Fed is hoping that by keeping interests low it will push and move people and business to spend. So lets see how that is working for the Real Estate Industry — NOT!!!! Also I see more and more capital expenditures and investments going outside the country then are being made here.

Low interest rates also have contributed to 50-year troughs in mortgage rates, which are determined by a variety of interest-rate benchmarks. Freddie Mac reported average fixed mortgage rates rose modestly last week to 4.22%, after seven straight weeks of declines. A year ago, the 30-year fixed-rate mortgage stood at 4.36%. The 5-1 ARM slipped to 3.07%, setting a record low. Has this moved the Real Estate Market???  I have not seen any tremendous upsurge in sales, or Real Estate Prices.

If you’re on a fixed income facing rising costs for energy and food, or if you’re so wary of your money disappearing in the stock market that you’re sitting on a bank savings account full of cash. Most bank savings rates are below 1%.

Low interest rates hurt, too, if your retirement is dependent on interest income from certificates of deposit. Interest rates on a one-year CD have plunged to 0.42% from 2.38% just three years ago. Most money-market mutual-fund yields are at 0.01%.

The list of negatives goes on and on when it comes to low interest rate but the positives do not seem like they are really positive.