As a Realtor, I am here to deliver important updates on the the market and mortgage rates. As many of you may have heard, the results of the meeting with the Feds today are finally in.... but what does it mean to YOU? The most important factors are this...
1) The federal fund rate was cut by 1/2 a percent, instead of 1/4 which was predicted by many. This sent Wall Street into a frenzy...more importantly for us, it indicates the Federal Reserve is finally recognizing what we all have know for a very long time, our economy needs 'some love' and a little bit of hand-holding to get through this bump in the road.
2) A 0.25 rate cut was expected, and probably would not have had much impact because current rates were already based on the .25 reduction... Since that 1/2% rate cut was not expected, I would forecast that we should see an improvement on our prime-based loans as well as the standard 30 year fixed loan.
3) Today's action is not a permanent fix to the current conditions. In fact, most analyst are predicting another cut on October 31st at the next Fed meeting. However, this is a positive move for us and good news should be shared!
As I've mentioned in my other blogs, this is a great time for first-time buyers to find that perfect home -- and take advantage of the lowered interest rates.
To start the search for your new home, visit www.ATLhomesearch.com.
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