How Low Can You Go?!!!!

That old Limbo song may find a whole new application in our economy today. With rates already bouncing around two year lows, the Chairman of the Federal Reserve Board announced yesterday that they will take the Fed Funds rate lower if necessary to keep the economy out of recession. So, how low will they go at the next meeting? A quarter point drop? A half point drop? And how far down will mortgage rates follow the Fed Funds rate? Keep in mind, taking those rates down lower, brings some big negatives to the table, too; like inflation..... a declining dollar.... higher prices on anything impacted by either of those issues, which is just about everything!! Oh My! What is going to happen next week? Sometimes I expect to see Sweet Nell on the railroad tracks when I check on rates... its one cliff hanger after another!!  And still I catch myself humming that old limbo song as I peruse the rate sheets every morning... How Low Can You go?