How Low will the Fed Go?

By
Real Estate Agent with Weichert Realtors, Precision

The Fed will most likely cut interest rates on the 31st at the conclusion of the FOMC meeting, and we now expect the Fed will continue cutting at each of the next four meetings to take the FF rate to 3.75%.

It is catch up time for the fed as the economic outlook has turned negative. There is little reason to think the economy can withstand the tightening of all credit and the housing recession, as well as the coming foreclosures.

 Source: Shirmeyer Report

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Rainer
407,371
Sean Allen
International Financing Solutions - Fort Myers, FL
International Financing Solutions

Hopefully the rate will continue to drop, drop,drop....Maybe tis will make for a more exciting Halloween.

Just my personal preferrence.

Sean Allen

Oct 22, 2007 09:31 AM #1
Rainer
56,508
Chul KIM McGuire
CorpusTV.com - Corpus Christi, TX

Sean,

I believe the Fed Reserve will drop 0.25%. Last 0.5% drop was huge at one time. So, they definitely took things seriously.

Nearly impossible to predict beyond Oct.

The help with a drop in Oct. should help leading into the holiday shopping season which is the busiest spending time.

Best time to buy is still NOW. However, with nearly all 100% financing deals going out the door and many people worried about ARMs and other specialty loan programs, getting buyers without perfect credit scores will continue to be one of the major hurdles to get back on track with the real estate market as in the past.

Cheers, KIM.

Oct 22, 2007 09:39 AM #2
Ambassador
895,575
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production
Glad you're back bro.....I'm sure that we'll get another .25%....but you know that we hit all these stupid "inflationary" numbers last week...gross!  I still believe that it'll be .25%
Oct 22, 2007 02:13 PM #3
Rainer
29,540
Sharon Leigh
Sharon's Graphic Reality - Port Saint John, FL
(Graphic Reality) Got PhotoLogo? CandelLife@Gmail.
Isn't it at 4.4 now? I was wondering how low it would go. If this doesn't kick the sales into gear... what would? You would think this would do it. I heard something on CNN about people getting new arrangements instead of having to go into foreclosure. Have to find the story online.
Oct 23, 2007 02:46 PM #4
Rainer
58,330
Ralph Nudi
Success Realtors brokered by eXp Realty - Kenosha, WI
"YOUR success IS our success"
Low Low VERY LOW - not because we need the rate that low, but because of the psychology of the average buyer!!
Oct 23, 2007 03:36 PM #5
Rainer
29,540
Sharon Leigh
Sharon's Graphic Reality - Port Saint John, FL
(Graphic Reality) Got PhotoLogo? CandelLife@Gmail.

OK, so maybe because I'm not a realtor I would all into that "average buyer" group... LOL

I see lower interest rate and do the math, it turns into a lower monthly payment... at least that's how I see it...

Wrong?

~Sharon 

Oct 23, 2007 04:51 PM #6
Rainer
1,245
Ben Gentile
Weichert Realtors Precision - Kenosha, WI
I agree with mr Kaberstein, with all the coming foreclosures, something has to happen in order stimulate the economy and housing market.
Oct 24, 2007 06:20 AM #7
Rainer
25,503
Greg Adelman
Midwest Home Center - Saint Croix Falls, WI

What a day today, Randall,Thanks,
Greg Adelman

Midwest Home Center LLC.
715-483-0012
612-735-4414 cell
612-395-5444 fax

 www.midwesthomecenter.com
 

Oct 08, 2008 01:08 PM #8
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Randal Keberlein

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