This morning, the Federal Reserve cut the Fed Funds Rate by 50 basis points and coordinated an emergency global interest rate cut with the European Central Bank, Canada, UK, Switzerland and Sweden.
Typically, when the Fed cuts rates by itself, the US Dollar weakens–which leads to higher inflation and negative movement for Mortgage Bonds (higher mortgage interest rates). But a coordinated effort should keep the Dollar steady, which means Bonds may be able to benefit from the coordinated cut.
The good news is rates are still steady (so far) today and real estate (as we have maintained all along) is proving to be the safest place to invest. If you’ve been on the fencepost with regards to buying or selling a home, let’s talk. This may not be a good time…but then again, this could be the best time. It all comes down to your individual situation and you can count on us to give you honest answers and sound advice. Feel free to call the Freeman/Davis Team at 919-649-6638. We’re online at www.FreemanDavisHomeTeam.com.
By the way, with regards to the rate cut this morning, it has the support of Presidential candidate John McCain who released the following statement.
“I applaud the move by the Open Market Committee of the Federal Reserve and other national monetary authorities to reduce interest rates to address the financial crisis spreading across the globe. It is imperative at this moment that government is responsive to the needs of Americans, restore confidence in our financial system, provide assistance to struggling homeowners, and implement pro-growth policies that will create jobs and provide a foundation for a more prosperous future. That is why last night, I called for an American Homeownership Resurgence Plan — a plan to use taxpayer money not just to bail out Wall Street, but instead to keep families in their homes and to stabilize financial markets from the bottom up. I am committed to protecting the American worker in this crisis. I am dedicated to reforming the corruption in Washington and on Wall Street that is the root of the financial system meltdown. I will get the economy back on track.” — Sen. John McCain