Rate Cuts by the Fed

This morning, the Federal Reserve unexpectedly announced it was cutting the federal funds rate that effects consumer loans as well as the discount rate effecting bank loans by three-quarters of a percentage point each. This is a bold move which shows that Fed Chairman Ben Bernanke is following through on his promise to take “substantive action in a timely and decisive manner” to keep this country out of a recession.

Rate cuts typically stimulate economic growth over time by making it cheaper to borrow money for consumption or investment after banks follow the Fed™s lead and lower their prime lending rate for their best customers.

If you have been thinking about selling your home, and upgrading to a more expensive home, now is the time to do it. Homes in our area are selling for a bargain, and mortgage rates are already low and look like they will be going lower real soon.

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