The FED met today and cut the Federal Funds Rate and the Discount Rate by a half percent each. The Federal Funds Rate is an overnight bank lending rate that affects home equity lines of credit, credit cars, and auto loans . It is now at 3%. The Discount Rate is what the banks pay to borrow money directly from the FED. It is now at 3.5%. This will not, however, directly effect long term interest rates.
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Benchmark Realty LLc - Nashville, TN
CLint - we know that it's not goint to change mortgage rates, but it does change the opinion of buyers, and they have been waiting for this. Now they have no reason to wait. Let's see what happens.
Jan 30, 2008 06:40 AM
Peoples Home Equity, Inc. - Mount Juliet, TN
Larry, that's a great point. I think you'll see more buyers out looking with the positive new of the rate cut.
Jan 30, 2008 06:45 AM
Chuck Willman - Alpine, UT
NewHouseUtah.com
It's unbelievable to me the rate at which Bernanke has cut rates in the past couple weeks. Hopefully it will have the intended result.
Jan 31, 2008 02:31 AM
Peoples Home Equity, Inc. - Mount Juliet, TN
Let's hope it is positive, Chuck. Rates getting so low is kind of waht got us into the mess we are in now
Jan 31, 2008 02:37 AM
Vision Realty Centers - Brighton Township, MI
Great info, and thanks for blogging. Also, thank you for commenting on my blog. I look forward to seeing more information on your blog. Hope 2008 is a great year for you. Lu
Feb 04, 2008 11:18 PM
Keller Williams Realty - Ann Arbor, MI
Ann Arbor Area Real Estate
Very interesting. Thanks for keeping us updated! So what is the address on Bonerwood? Should I be afraid to ask? Oh gosh!
Feb 06, 2008 04:42 AM
Jolynne Photography - Hemet, CA
Bat Mitzvahs, Senior Pictures, Event Photography
Clint...short and to the point. Well done.
I read an article in the paper that contested that there's a bubble in the treasury bonds that's ready to pop. To summarize...long term rates are going to jump. Other economists disagree, but what a funky and unpredictable economy we are in.
Stay safe out there.
Feb 07, 2008 04:31 AM
Benchmark Realty - Franklin, TN
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