In a bold move, the Federal Reserve unanimously voted yesterday to set a target range for its federal funds rate so that it will hover between .25 and zero.,  The federal funds rate is the interest rates banks charge each other on overnight loans.  This rate had previously stood at 1% and is now at a record low.

Interest rate cuts are seen as beneficial to the economy since they usually lead to banks lending more.  I am encouraged by this and hope it will indeed result in freeing up money for loans for consumers. 

Current mortgage rates are about 5% depending on equity, credit score and  purpose of loan.  Now is a great time to buy a house and a perfect time to refinance.  I am currently working with previous customers and saving them hundreds of dollars a month on  their mortgage payament.  In these times, everyone is looking to reduce their expenses. 

I hope this rate decrease will encourage potential buyers that are waiting to make the move.  I am sure they won't regret it.

 
Posted by Barbara Dennison on 12/17/2008 07:12 AM   Comments (7)   Mortgage Rates in the ActiveRain Channel  
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This post has been included in Connecticut Real Estate News

7 Comments on Fed Cuts Rate To Record Low

DEC
17
2008
1,950,080 Points 478 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Big deal.  Another sop to the financial industry.

Won't do a thing to help the housing market.

TOTOH, my equity line payment will no doubt go down again. 
7:18am • #1
215,770 Points Outside Blog Called Shot Master

It will help housing. Rates in the 4% range will help the first time buyers get approved - keep posting the GOOD NEWS.

Have a GREAT DAY!
7:20am • #2
Localism Sponsor

Good Post Barbara.  Keep selling.
7:22am • #3
220,793 Points 4 Featured Posts Localism Sponsor

I have used my equity line to invest in real estate so this helps minimize my losses.  It will help a little, probably not even a fully baby step, maybe slow the decline.  We need several big steps for example buyers being able to see the floor in this market and getting investors active in the market (not speculators). 

Mark Watterson, Utah real estate, property resource specialist

 
7:28am • #4
842,602 Points 85 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

This is huge, but really they said that they need to drop mortgage rates to incredible lows for the economy to begin to start humming along.
8:12am • #5
587,699 Points 12 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Barbara... This is obviously helping some people already.. and I'm sure it will help others.  Thanks for sharing this information here on ActiveRain.

valerie osterhoudt
9:37am • #6
1,359,749 Points 244 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Barbara if the rates drop any more we should start to see an increase in Refi's, and hopefully it will also motivate more purchases.
3:18pm • #7


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Barbara Dennison

Old Saybrook, CT

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