The Federal Reserve lowered a key U.S. interest rate by a Half percentage point on Wednesday.
More importantly, the FED hinted the move could be the last for some time.
The question on the minds of Wall Street and Main street is , "is this enough to stimulate the economy and the housing market" ? - can it help real estate sales in Metro Phoenix ?
Clearly, the President, Congress and the FED are taking action to help stimulate growth and help real estate to prevent either a recession or further recession, depending on who you ask.
However, rate cuts (for the most part) have not helped most of the economy and the all important bond market (which dictates mortgage rates) has not risen much forcing interest rates down only slightly down this year.
The FED meets again in 6 week. The question is on everyone's mind; Are they done cutting rates? and ,
will rate cuts help stop a real estate market decline?
Opinions differ, ...
In Arizona, at least in the greater Metro Phoenix area, we need more than most.
However, the economy needs some time to absorb the massive 2.5% drop in the last 3 months to offer a more clear indication of where we are and where we need to go.
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