Federal Reserve Rescues Wallstreet
Posted by The Keen Team on Wednesday, January 23, 2008 at 11:27:09 AM
By The Keen Team / January 23, 2008
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The Federal Reserve sent a clear message about the state of our economy with an "emergency" rate cut of .75% this week. This is the deepest cut in the Feds Fund Rate since 1984. All this on the heels of a meltdown in the world economy and strong signs of a U.S. recession.
This is great news for most of us who have balances on credit cards, auto loans, Home Equity Lines of Credit, or even Adjustable Rate Mortgages. And who doesn't, right?
However, for long-term mortgage rates, this could very well be the "beginning of the end" of the lowest 30 year Mortgage Rates we've seen since 2005. Now...before you go running to your preferred lender to lock-in our historically low rate...it might be worthwhile to pause for a moment and take a closer look at the effect these deep rate cuts have on the 30 Year Mortage Rate:
In January to June 2001
Rate down 2.25%
Long Term Mortgage Rate Rose 0.10%
October to December 2001
Rate Down 0.75%
Long Term Mortgage Rate Rose 0.45%
May to August 2003
Rate Down 0.25%
Long Term Mortgage Rate Rose 0.78%
So what does this mean for the Intown Atlanta real estate market? Well, I'm no fortune teller - but if money is more expensive to borrow for potential home buyers and investors in a suffering economy - 2008 is going to be a long year for us all.
This is great news for most of us who have balances on credit cards, auto loans, Home Equity Lines of Credit, or even Adjustable Rate Mortgages. And who doesn't, right?
However, for long-term mortgage rates, this could very well be the "beginning of the end" of the lowest 30 year Mortgage Rates we've seen since 2005. Now...before you go running to your preferred lender to lock-in our historically low rate...it might be worthwhile to pause for a moment and take a closer look at the effect these deep rate cuts have on the 30 Year Mortage Rate:
In January to June 2001
Rate down 2.25%
Long Term Mortgage Rate Rose 0.10%
October to December 2001
Rate Down 0.75%
Long Term Mortgage Rate Rose 0.45%
May to August 2003
Rate Down 0.25%
Long Term Mortgage Rate Rose 0.78%
So what does this mean for the Intown Atlanta real estate market? Well, I'm no fortune teller - but if money is more expensive to borrow for potential home buyers and investors in a suffering economy - 2008 is going to be a long year for us all.
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