Feds cut rates .75 rates again? How do you feel about it?

By
Real Estate Agent with Realty Professionals, Inc.

I try to stay up with all that is going on in the financial market and with the Feds cutting the rate again, will that really help.  I know for me personally, I like for it to drop because it will decrease the rates I pay on my in-house bank loans that are tied to the fed rate.  But, will it really help everyday people that are trying to get by.  They are faced with rising gas prices which will in turn raise the price on consumer products because of shipping and the lowering of the value of the dollar. 

I understand economics, with lower rates, businesses and others entrepuneuers will spend money and expand their operations and in turn create new jobs or services.  I don't think that will work this time.  Look at the Bear Stearns fallout, I think everyone has opened their eyes wider (or at least I have).  I feel I am ok with my assets and how they are leveraged but I am not wild about jumping into further debt.  Think about it, if I am buying rental properties to rent out, do you feel tenants will be struggling and therefor not paying their rent on time or even at all.  I currently have someone moving out of a rental because he says he can't afford it and will be moving back in with his mother.

Don't get me wrong, if a deal comes along, I will probably be the first in line!  We have to be smart about what we are doing and I just feel more people are going to be a little more wiser in their decisions and be slower to act.  What do you think?

I am a Realtor in Searcy, Arkansas and I sell new homes, existing homes, commercial property, farms and land as well as manage and own rental properties. If you are looking for real estate for an investment or a home, I will be glad to assist you! You can call my personal cell number at 501-278-7659 or e-mail me at Larry@Searcy4Sale.com.

Comments (4)

Angela Clark
Tony Clark REALTORS - Owensboro, KY
CRS, Realtor, Broker

The reality is, the Fed rate cut does not help the lending consumer.  It makes our already weak dollar weaker.   Rental occupancy rates in my area (Owensboro KY) are near 92%.  

Mar 18, 2008 07:37 AM
Jennifer Davis
RE/MAX Advantage - Searcy, AR

Larry,

Your probably right but at least it gives the average American one piece of good news to hear and read about!!

Mar 18, 2008 07:53 AM
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Larry,

This should help the investor who is borrowing "in house" money. I guess builders will also benefit on construction loans if they venture out to build again!

Mar 18, 2008 08:01 AM
Barbara S. Duncan
RE/MAX Advantage - Searcy, AR
GRI, e-PRO, Executive Broker, Searcy AR
I'm thinking of buying a rent house so I get more return on my money.  Let me know if you find a good one.
Mar 18, 2008 12:50 PM