Fed Cuts Rates…Again
January 30th, 2008 by Harvey ShapiroAt its scheduled meeting today, the Federal Reserve again cut interest rates, this time by 50 basis points, or one-half percent. This follows the emergency move of three-quarters percent just last week and lowers the benchmark rate to 3.0%.
The Fed is reacting to risks in the financial markets and this latest move should help the stock market or at least slow down the bleeding. What will be hurt is the value of the US dollar which will sink compared to foreign currencies.
The effect on the O`ahu housing market? Financing costs should go lower for US buyers and non-US buyers will see our prices dropping due to the enhanced exchange rate.
Prices here have been very stable compared to other US cities. Our borrowers have been more conservative and have avoided the sub-prime loan markets which have caused the instabilities in financial markets.
In all, I believe this is a favorable move for the housing market. What do you think?
January 30th, 2008 at 12:21 pm
What was it? Not even a full two years since the last the the Fed raised interest rates with those, OK, let’s increase 1/4 this quarter . . . OK, how ’bout another up 1/4 THIS quarter? Now, they’re cuttin’ and slashin’? Shouldn’t they have seen THIS short term? Heck, I’ve not bought the Fed as the 007 of financial saves for a while, now. Maybe they should talk to more working people as they set policy or decisions.
Indeed, NOW’s the time to buy, with the whole subprime thing exposed (though, I don’t know anyone personally who took that route), alone. Heck, agents they might welcome you into their offices with fanfare, lunch and stuff, with business about to slow down, no?
And, I dunno about this rebate or free money thing President Bush is offering. I mean, heck, I’ll take the $400 or whatever; but, for a lot of folk, I don’t think they’ll end up using at as how the administation wants recipients to use it; and pay off bills instead.
January 30th, 2008 at 2:07 pm
What will the 30-year mortgage rate be?
January 30th, 2008 at 4:23 pm
You can get the latest mortgage rates here:
http://www.hicentral.com/mortrate.htm
These rates are updated weekly, around 4:15 pm on Wednesdays.