In a bold move, the Federal Reserve unanimously voted yesterday to set a target range for its federal funds rate so that it will hover between .25 and zero.,  The federal funds rate is the interest rates banks charge each other on overnight loans.  This rate had previously stood at 1% and is now at a record low.

Interest rate cuts are seen as beneficial to the economy since they usually lead to banks lending more.  I am encouraged by this and hope it will indeed result in freeing up money for loans for consumers. 

Current mortgage rates are about 5% depending on equity, credit score and  purpose of loan.  Now is a great time to buy a house and a perfect time to refinance.  I am currently working with previous customers and saving them hundreds of dollars a month on  their mortgage payament.  In these times, everyone is looking to reduce their expenses. 

I hope this rate decrease will encourage potential buyers that are waiting to make the move.  I am sure they won't regret it.