Federal Reserve Cuts Key Interest Rate for the 2nd time
The Federal Reserve cut the federal funds rate Wednesday, October 31, 2007, for the 2nd time in two months in an effort to combat economic turmoil caused in part by soaring oil prices, the credit crunch, and the stalled housing market. The “Fed Funds Rate” is the interest rate that banks charge each other. Most experts expected Wednesday's rate cut as the Federal Reserve takes action to try to protect the economy from slipping into a recession.
Market Update
The housing market is declining in several areas around the country to the point where large mortgage lenders have put cities in those areas on a “declining markets” list. However, the Twin Cities and other secondary Minnesota cities are not on the list as homes in our region continue to sell. Prices are favorable and rates for great credit and 5% down payment are once again approaching 6%.
Keep an Eye on the Market
Once the housing market starts its inevitable turnaround, experts say that housing prices will resume their upward trend. The point at which both interest rates and housing prices bottom out at the same time has proven to be an exceptional, affordable time to buy.
Pete Shrader
MoneyLink Mortgage
(952) 292-0285
pete@theshraderteam.com
www.theshraderteam.com
For today's mortgage rates email Pete or call him at (952) 292-0285. Pete has been a mortgage loan officer for 10 years and is currently with MoneyLink Mortgage, a mortgage broker located in Eagan MN. Pete specializes in residential mortgage loans for first time home buyers, repeat home buyers, investment properties, and refinance purposes. Mention that you saw this blog for a FREE 30 minute credit consultation.