Fed in Damage Control: 2nd Interest Rate Cut in 8 days!
Thursday, January 31st, 2008Well, if this isn’t a sign of economic gloom I don’t know what is … ( You won’t hear me complaining, though …)
It is more than obvious the economy needs a boost so why not go straight to the source and hope the cuts will get us all to SPEND SPEND SPEND! The Fed has made total cuts of 2.25% to their Funds rate since December, a good sign, I think.
So, what does this mean for buyers? Lower mortgage rates. While mortgage rates don’t always follow the Fed Funds rates, the 30 year rate has already dropped by half a point to 5.5%.
And owners ….
People with ARMs are sighing in relief since those with mortgages scheduled to reset this year will likely end up seeing their rates drop. For many could mean the difference between holding onto their home or being forced to sell.
So will all these moves keep the economy afloat or is more gloom to come?
Statistic Sources:
Mortgage Bankers Association
UPDATE: