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Fed to cut rates... again.

By
Services for Real Estate Pros with FM Properties

The Federal Reserve met today and will be cutting the Fed Fund Rate, but how much? Some economists are saying that ½% is needed while others predict a more conservative approach of ¼ %. There were 3 cuts last year and the question now is how many will we see in 2008?

Angela Clark
Tony Clark REALTORS - Owensboro, KY
CRS, Realtor, Broker

It's an election year, and the rates will follow that roller coaster.  We'll have to enjoy the ride, and hope smart buyers see the opportunity at hand!    Angela

Jan 10, 2008 04:38 AM
Terry Rush Cremia
Shore Realty of the Outer Banks - Corolla, NC

As long as they don't keep harping on maybe we'll lower the rates--it seems like when the Fed does that carrot-dangling thing to the general public, buyers who might be ready, willing and able wait longer to make an offer and it can mess up our buying "seasons" here in our market.

We have a resort area where, historically, mid-summer and mid-winter are slack and the fall and spring are our buying boom times.  This past summer was busy, then fall was deadsville, as far as buyers.

Then the Fed shut up about the rates and buyer activity picked back up in the winter, which was wierd for us!  Now have two buyers u/c here in the dead of winter--woo hoo!  Not complaining, just sayin'...

Jan 10, 2008 05:35 AM
Jeff Fullmer
FM Properties - Idaho Falls, ID
Real Estate Investor/Financier

Terry, that has a big affect on rates when the intended good is well... not so good as was hyped. The market as a whole reacts the same.

Good for you! Plenty of buyers around, just not enough to keep up with the avalanche of listings!

Jan 10, 2008 12:19 PM
Susan Trombley
Trombley Real Estate - Wake Forest, NC
Broker/Realtor, Raleigh, Cary, Wake Forest, Youngs
I heard on the debate last night that the febs should leave the rate alone and the economy will fix itself?
Jan 11, 2008 01:07 PM
Jeff Fullmer
FM Properties - Idaho Falls, ID
Real Estate Investor/Financier

Well, Susan, I have mixed feelings about it. We do have to feel some pain or else we only prolong the agony till it builds to bursting. Yet, how much pain is too much? After the roaring 0's, are we only repeating the roaring 20's? Is 2008 1928? I hope not and don't think so but saying that the economy will fix itself is like saying that if you leave a hammer, nails, and wood on a job site that a house will build itself. Nor once that house is built will it maintain itself. It needs some sweat and hard work to keep it functioning. If you fail to maintain it or do a bad job on it then the cost and effort to bring it up to speed can be difficult.

And, did you mean to say "feds" or "fibs"?  = )

Jan 12, 2008 01:45 AM