May 1st, 2008 9:34 PM by Uletas Greene Carter
Tuesday, April 30, 2008 --The Federal Reserve cut interest rates by a hefty three-quarters of a percentage point.
This type of rate cut will help the housing market because it will make interest rates more affordable and make homes more affordable for people.
The Fed's cut is good news for borrowers because lenders cut the prime rate, the benchmark for many home-equity loans. Credit card rates should fall over the next few months. Those with adjustable-rate mortgages resetting soon will also benefit.
Fed Chairman Ben Bernanke said, "The outlook for economic activity has weakened further. Growth in consumer spending has slowed and labor markets have softened. Financial markets remain under considerable stress." The Fed repeated that it is concerned about the economy and said it will "act in a timely manner as needed." This statement suggests more rate cuts could come; as a result, the Fed is striving to steer the economy in the right direction.
Thinking of buying, selling or refinancing, call Uletas Greene Carter today at 213-804-3369 or visit www.uletas4realestate.com.
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