For several months now home loan interest rates have been cut in an effort to stave off inflation. US benchmark interest rates are at the lowest level since June 2004 after the Federal Reserve this morning cut its key interest rate from 1.5% to 1%.
Having cut the fed rate six times one would think the economy would make a come back but with the stock market crash only days ago the eonomic turnover for the better seems distant.
Still the constant cuts are good for those shopping low mortgage interest rates. At the lows just keep coming. San Francisco Federal Reserve President Janet Yellen said the Fed could lower rates below 1%, and that they could reach as low as zero amid a weak economy. If the Fed do cut rates to 1% this would be the lowest level since June 2004.
What effect did this low level cut have on the economy? Will this cut produce long term economic stability? Only time and a little hope will tell. Just remember it's been done before and not so long ago. And although it's a drastic move to fend off a serious downturn it is indeed a home buyers market and a home refinancing treasure trove.
Having cut the fed rate six times one would think the economy would make a come back but with the stock market crash only days ago the eonomic turnover for the better seems distant.
Still the constant cuts are good for those shopping low mortgage interest rates. At the lows just keep coming. San Francisco Federal Reserve President Janet Yellen said the Fed could lower rates below 1%, and that they could reach as low as zero amid a weak economy. If the Fed do cut rates to 1% this would be the lowest level since June 2004.
What effect did this low level cut have on the economy? Will this cut produce long term economic stability? Only time and a little hope will tell. Just remember it's been done before and not so long ago. And although it's a drastic move to fend off a serious downturn it is indeed a home buyers market and a home refinancing treasure trove.
