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Fed Rate Cut a Certainty

"Scissors" by Karlis Caupals & "loan application" by Jan Stastny

It's not often the Fed Chairman (Ben Bernanke) tips his hat.

Today he tipped it and flung it up in the air, pronouncing “We stand ready to take substantive additional action as needed to support growth and to provide adequate insurance against downside risks...”

In other words, (mine) "we're cutting rates again".

When?

Well- they meet on Jan 29-30.

How much?

It's anyone's guess. Many analysts say a quarter percent while others predict a bolder move of one half percent. No one is guessing an increase.

Posted by Chuck Willman, Arizona East Valley Realtor® on 01/10/2008 04:04 PM

Comments (8)

the fed, bernanke, interest rates

Post is included in group: 1031 Investments and Ideas

8 Comments on Fed Rate Cut a Certainty

Hmmm, Let me think about this a moment... Some positive news Hmmm... Lets see which gets more time on the national news: positive stuff or more negative stuff.

01/10/2008 04:12 PM

by Bill Gillhespy Fort Myers Beach Realtor (Century 21 Tripower Realty)

Chuck,

Bernanke couldn't wait until the end of the month when the meeting takes place. The market will now figure a rate cut into its calculations so when the actual cut happens, nothing much will change. Good news in any case.

01/10/2008 04:33 PM

by Esko Kiuru - Las Vegas NV Mortgage Consultant (Sinifox Financial)

Bernanke's comments, coupled with speculation that Bank of America may buy Countrywide (moving Country wide shares up just over 50%) makes it a pretty good day in housing news.

01/10/2008 05:19 PM

by Chuck Willman, Arizona East Valley Realtor® (Gentry Realty)

Chuck, hopefully this adds some bounce to our market. This is good news, and it's all good. :-)

01/14/2008 07:58 PM

by Mesa, Arizona Real Estate *** Teri Ellis, Broker, ABR,CRS,GRI,ePRO,MRE (Homes Arizona Real Estate LLC)

Chuck,

In our business sometimes bad news is good news. I hope we get the 1/2 point cut. I have been waiting to refinance a house until that cut.

01/15/2008 10:38 AM

by Mike Frazier, Dyersburg Tn Real Estate (Carousel Realty of Dyer County)

Mike: you and a few of my fellow agents! Yes... rate cuts can be very nice!

Teri: I love to see you pop by! Until this post I didn't realize your sig also has a picture... I wish it showed up in the comment section along with the text.

Esko: Yes... amazing how the market reacts. The news had an instant impact on the sector... even though it references future intentions.

Bill: Now that enough time has passed... what do YOU think? :-)

01/15/2008 06:31 PM

by Chuck Willman, Arizona East Valley Realtor® (Gentry Realty)

Chuck,

This is certainly a bit of good news for us in the 1031 industry. Money had gotten a bit expensive for many big players out there who were content to wait out the rate. Feel like The Price is Right...coooooome on down!

Matt Linville, Certified Exchange Specialist

01/15/2008 07:39 PM

by Matt Linville, Certified Exchange Specialist (President of Banker Exchange, LLC)

Yes Matt. I know the investors interested in 1031's have begun to call again- which is a welcome change for those of us who cater to that market.

01/16/2008 06:07 PM

by Chuck Willman, Arizona East Valley Realtor® (Gentry Realty)