This week, look for the Fed to cut the Fed Funds rate (the rate for overnight loans between banks) by a half point, to 0.50 percent. While a cut by the Fed often causes home loan rates to rise (because a Fed cut can lead to inflation, which is the arch enemy of Bonds and home loan rates), the deflationary environment we are currently in may prevent home loan rates from worsening.

Another event to note on Tuesday is the release of November's Consumer Price Index (CPI) Report. This widely watched inflation indicator tells us how much more expensive goods and services are this month over last month, and with recent concerns on deflation - this will be an important report to watch.

Bonds and home loan rates ended the week at their best levels of this year and in over five years. Let me know if you want some more information about how you can take advantage of the current situation.
Have a safe week!

Thomas Ray,M.S.,Realtor
Keller Williams Realty
Office:310.862.1786,Cell:310-420-1149
www.LAexclusiveProperty.com
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Posted by Thomas Ray on 12/15/2008 09:58 PM   Comments (0)   Fed Rate in the ActiveRain Channel   rates, financials, fed action  
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Thomas Ray

Thomas Ray

Santa Monica, CA

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L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City

Office Phone: (310) 420-1149

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Local up-to-date Real Estate news and activity for Buyers and Sellers in the Los Angeles California areas of Santa Monica, Pacific Palisades and the Westside.


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