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Federal Reserve Raises Interest Rate Charged to Banks, In First Move Since 2008 - CT Mortgages

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Mortgage and Lending with Canopy Mortgage - Leo Namiot 89769

Federal Reserve Raises Interest Rate Charged to Banks, In First Move Since 2008

It was only a matter of time until rates started to move oupward and last week The Federal Reserve, taking its first step to return lending to normal after more than two years of extraordinary actions to prop up the economy, on Thursday raised its discount rate -- the interest rate it charges on emergency loans to banks -- by one-quarter percentage point.


The increase, to 0.75 percent from 0.50 percent, takes effect on Friday 2/19/10.
Officials said the move was not meant to be a broad tightening of credit. Rather, they said, it was intended to discourage emergency borrowing when other financing is available to banks.
The discount rate had been at 0.50 percent since December 2008

In my Market, Connecticut home buyers should take notrice and take advantage of low mortgage rates and bargains on homes before the rates start to move up to the 6%-7% area again. We are seeing homes here in CT start to increase in value which is great news for home sellers. ---- Buyers: Your window may be soon ending to get a great low mortgage rate and a great deal on a home.

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