There's been a much anticipated rate cut for the past couple of weeks. In fact the cut in the Discount Rate was seen as a prelude to a cut in the Fed Funds Rate. The only question looming in people's minds was whether we would see a cut of 25 or 50 basis points (.25% or .50%). Now to the good part, the Fed announced a rate cut today in a Federal Reserve Press Release:
"The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 4-3/4 percent.
Economic growth was moderate during the first half of the year, but the tightening of credit conditions has the potential to intensify the housing correction and to restrain economic growth more generally. Today’s action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time."
This action will hopefully inject some much needed confidence into the economy. Furthermore, it will help 2nd mortgages and adjustable rate mortgages by lowering the indexes on which they are priced.
Mortgage Rates In Past Weeks:
Weekly Mortgage Update - September 10
Weekly Mortgage Update - September 4
Weekly Mortgage Update - August 27
Weekly Mortgage Update - August 20
Weekly Mortgage Update - August 13
Financing Solutions:
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