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Fed Cuts Interest Rate - Now what?

By
Real Estate Agent with ERA Realty Pros

The Federal Reserve slashed a key interest rate by a half a point (most experts were expecting a quatere point reduction).

Listening to the market watch, one expert pointed this out and stated that this was a claar statement from the Federal Reserve, that they are willing to step in and make more adjustments, should it prove necessary.

Said same analyst also stated that although it assists short term loans, it will not really help current mortages.

I'm curious to hear what everyone thinks about all of this and what they expect to see will happen as a result of the rate cut.

 

Ann Heitland
Retired from RE/MAX Peak Properties - Flagstaff, AZ
Retired from Flagstaff Real Estate Sales
I was expecting a quarter or none. This seems needlessly inflationary and therefore is likely to raise mortgage rates!!
Sep 18, 2007 02:39 PM
Andrew Scherer
Approved Mortgage Group - Doylestown, PA
Real Estate Representation At It's Finest
Richard, you and I think very much alike...as you were writing this post, I was doing the same on my blog.  You can check it out by clicking here.  I am really interested to get a discussion going on what are the next steps toward rejuvinating the housing market!  Nicely done, and great minds think alike (even in the title).  haha...thanks!
Sep 18, 2007 02:48 PM