Real Estate Blog - Fed Rate Cut a Certainty

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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 Realtor® 480.292.0600 on 01/10/2008 04:04 PM

Comments (8)

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the fed, bernanke, interest rates

Originally posted at: Arizona Real Estate Specialists: Fed Rate Cut a Certainty

8 Comments on Fed Rate Cut a Certainty

JAN

2008

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.

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.

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.

JAN

2008

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

JAN

2008

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.

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? :-)

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

JAN

2008

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.

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