Huge Fed rate cut

By
Real Estate Agent with Sand Dollar Realty Group, Inc. BK627826

Today the Fed cut the federal funds rate a huge 3/4% . This is the biggest rate cut they have made since the the early 1990s.  You can read more about it in USA Today.  The announcement didn't seem to help the markets much as the Dow dropped below 12,000 and world markets have been having big sell offs as well.  This market has been quite a roller coaster.

  

The winners with the rate cut though will be people with business lines of credit, HELOCs, and credit card debt.  Rates on these should drop quite a bit.  I have a few outstanding lines of credit on my rental properties including the one I am using to fund my Flip This House transaction.  It is always darkest before the dawn as the old saying goes.

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(Copyright © 2008. Sand Dollar Realty Group, Inc. All rights reserved.)

Rob Arnold, ABR, CPL, CRB, GRI, Managing real estate broker, Licensed mortgage broker, Notary Public           

407-389-7318 www.SDRhouses.com/

Your full service and investor friendly Realtor in Orlando. Learn to invest in Central Florida real estate and Orlando real estate. Investor mentoring and counseling available.  I also provide flat fee MLS listings, For Sale By Owner, and menu-based services in Florida.

We buy houses cash in Central Florida including Orlando, Winter Park, Maitland, College Park, Ocoee, Apopka, Pine Hills, Altamonte Springs, Casselberry, Longwood, Winter Springs, Oviedo, Lake Mary, Sanford, Deltona, and Debary. www.WeBuyHousesFlorida.com/

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Rainer
68,711
Lisa Spalding
Casa Latino Four Corners, REALTOR, CDPE - Longwood, FL
REALTOR, CDPE

He he.  Yeah, our mortgage loan officer said the market was gonna take a huge dive today during our Tuesday office meeting.  Then , he said they had cut the rate by 3/4 and everyone was fairly happy.  Interesting, what can happen in a few hours....

Jan 22, 2008 09:57 AM #1
Ambassador
582,751
Konnie Mac McCarthy
MacNificent Properties, LLC - Cobb Island, MD
Broker/Owner - VA & MD "Time To Get A Move On!"
HI Rob..first (yay, rate cut) 2nd...are you aware of any programs where an investor can finance 100%...I am looking around for a program for one of my investors..
Jan 22, 2008 10:30 AM #2
Rainmaker
405,516
Simon Conway
Orlando Area Real Estate Services - Orlando, FL
The market just doesn't trust the fed they way it used to and the pressure it brought for the rate cut was apparently irresistible.
Jan 22, 2008 02:29 PM #3
Rainmaker
1,017,121
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

Lisa - I don't know if it is good or bad.  There are pros and cons because of the rate drop.  It is pretty scary to watch this whole thing unfold though.

Konnie - I am not aware of any 100% financing for investors.  I am licensed as a mortgage broker, but I don't practice.  I just refer my leads to the guy here in our office.

Simon - A rate cut can only accomplish so much.  This seemed more like a "knee jerk" reaction. It is an election year and the government is pretty motivated to do something to get the economy back on track.  I don't think this was much of an answer though. We need serious changes.

Jan 23, 2008 02:12 AM #4
Rainmaker
373,477
Donna Yates
BHGRE - Metro Brokers - Blue Ridge, GA
Blue Ridge Mountains
Rob:  Let's hope we've seen the bottom and now we are in for a very nice sustainable bounce!  I do believe it is going to take more than a rate cut though.
Jan 24, 2008 12:08 AM #5
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Rainmaker
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Rob Arnold

Metro Orlando Full Service - Investor Friendly & F
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