OMG- FED CUTS RATE 1/2 POINT!!!

September 18, 2007

There was much speculation at the water cooler about what exactly Federal Chairman Ben Bernanke (position formerly held by Alan Greenspan) would do with the rates. Some argued he’d keep it where it is while investors rallied today in anticipation that Bernanke would lower the rate.

This just in: according to Fox News, the Federal Reserve board has lowered the Federal Funds Rate to 4.75%!!! This half point cut is fantastic news for those homeowners who have adjustable rates that are about to reset, and it’s GREAT news for people who are in the market to buy- you will see better rates with this adjustment! Also benefiting are the sellers who have had trouble moving their homes- hooray!

The Federal Discount Rate (the rate which the federal reserve board lends money to banks) was ALSO cut by half a point reducing the rate to 5.25%. This means that there will be more money available to lend and will end the hemmorhaging of the market. The bottom line is that money is getting cheaper! Many of you have been holding your breath for this day and the great news is that you can now sigh in relief. So go ahead and pack- it’s a great time to move thanks to Bernanke!

Posted by Lani, Asset Director | Filed Under Blog, Buying, Market Conditions, Selling

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One Response to “OMG- FED CUTS RATE 1/2 POINT!!!”

Fed Cuts Rate AND Expanding American Homeownership Act Passes Today- and it's not even my birthday! : Search Buy Sell & Discuss Austin Homes & Real Estate on September 18th, 2007 10:03 pm

[...] TIME TO CELEBRATE!!! Within the last few hours, the Federal Reserve Board slashed rates followed by the great news that NAR’s tireless efforts to pass House Bill 1852 (also known as [...]

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