The Federal Reserve took a surprising action this week by making an emergency rate cut of .75%, the deepest cut in the Fed Funds Rate since 1984. The Fed Governors were acting in direct response to recent reports that the country is on the brink of recession.

What does that rate cut mean for you? It's great news if you have credit cards, auto loans, HELOCs, or an Adjustable Rate Mortgage. However, for long-term mortgage rates, this could signal the beginning of the end for the lowest 30-year home loan rate borrowers have experienced since 2005.

Let's look at the impact of a few recent Fed Funds Rate cuts and the corresponding impact to home loan rates to see what this could mean for you:

Many experts are predicting that the Fed will cut rates again when it meets at the end of this month. If you are waiting for long-term mortgage rates to fall further from here, don't count on it. Your best chance to lock in the lowest mortgage rates since 2005 is now. This is an unprecedented market and things are moving fast.

Particularly for buyers who've been sitting on the fence waiting for the "right time," this is that time. In Long Beach, Lakewood and surrounding areas, bank-owned foreclosure properties and short sale listings are driving prices down as inventory continues to outmatch supply. If you want to get a great bargain, we can help you do so.