What does this mean to us here on the streets?
If you are a borrower who can obtain credit, you should see rates drop on various kinds of loans. It will be less expensive for people to finance credit card debt, home equity lines of credit and other consumer based loans. Borrowing this kind of money usually pays for things like education, home improvements and medical expenses.
For those of you who have ARM loans (adjustable rates mortgages) that are scheduled to re-set in the fall , you will have the benefit of the rate not rising as much as it could have if the Feds did not lower the basis point at all.
There are blessing in everything, you just have to look!
The economy has the flu and the Feds are trying to keep the flu from turning into PNEUMONIA!
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