I am sure by now everyone knows the Federal Reserve on Tuesday sliced one-half a percentage point off the federal funds rate, cutting it to 4.75 percent from 5.25 percent. It also cut its discount rate by the same amount, also bringing it to 5.25 percent.
I think the big question on home buyer's mind right now is will we see lower interest rates in the near term? So far this week the mortgage rates have actually crept up. According to many enconmists, the rate cuts could be a mixed blessing for home buyers because of fear of inflation worries seen by many investors on Wall Street. I think in the near term we are unlikey to see any big movements downward in the mortgage rates unless we keep seeing more weakness in the national economy. Jobs and consumer spending numbers in the coming weeks will give us more of an indication on whether we might see lower mortgage rates in the near future.
Without sounding like the glass is half empty, relief from the rate cuts did come in other ways. Consumers should start feeling the impact quickly in the form of reduced payments on home-equity lines of credit, credit cards, and some car loans.
About Ted Blanchard
Ted Blanchard is a top agent and multi-million dollar producer in North Texas. His Company,
Texas Real Estate and Mortgage (TREAM) specializes not only in representing buyers and sellers in real estate transactions, but offers mortgage services as well. TREAM, Inc. is truly a one stop shop for real estate and mortgage services. Ted can be reached at 214-224-0907 or by email at
ted@tream.us
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