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The decision to purchase a home involves the buyer’s willingness to make a long-term financial commitment and one that should not be taken lightly.  First, one needs to determine if it is better to borrow money now or wait until the Fed raises the discount rate.  According to an article by The Balance, “The Fed raises the discount rate when it wants all interest rates to rise. That's called contradictory monetary policy, and central banks use it to fight inflation. This reduces the money supply, slows lending, and therefore slows economic growth.”  Therefore, it is better to purchase a home before the Fed raises the discount rate.  Secondly, if the Fed plans to raise the required reserve rate then a borrow should secure a loan before the increase in reserve rate occurs.  When reserve rates are increased the ability of the banks to loan funds is restricted because they must retain a higher proportion of all deposits made.  Lastly, if the Fed plans to engage in open market purchases such as buying or selling Treasury bonds the result is manipulation of interest rates which will increase or decrease the total supply of money.  According to, if the Fed buys bonds in the open market, it will increase the money supply in the economy by swapping out bonds for cash to the general public.  In contrast, if the Fed sells bonds, the money supply decreases from the economy.  Simply, if the Fed buys bonds, prices rise and interest rates decrease; if the Fed sells bonds, prices drop, and interest rates increase.  The third scenario is the only one that is a fiscally sound reason to delay the purchase of a home.  By delaying the purchase, a buyer will be able to secure a lower interest rate. 

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