Ryan’s Mortgage Blog:
As expected the Feds lowered short-term interest rates today, which is the second time in as many months. They did suggest this may be the last cut in rates, at least for a while, they will play the wait and see game. Many believe this was their last cut to help the economy through this rough housing market. I am interested to see what this does to mortgage rates since many lenders had been lowering them the last couple of weeks so I don’t think- this rate cut will cause them to go drastically lower, but lets hope J. Great time for a refi!
I took a blurb out of an article from the NY Times today so you can see what else this rate cut affected: “Treasury prices fell, reflecting some concerns that lower interest rates could stoke inflation. Oil prices surged nearly 4 percent and gold futures were up about 1 percent. The dollar modestly weakened against other major currencies. Yet just a few hours before the Fed announced its decision, the Commerce Department reported that the nation’s gross domestic product expanded at a healthy pace of 3.9 percent in the quarter that ended Sept. 30.Consumer spending, which accounts for more than two-thirds of America’s economic activity, climbed 3 percent. Job creation has slowed in recent months, but employers are still hiring more than firing and wages are rising faster than inflation. The unemployment, at 4.7 percent, is low and has barely budged.”
Many commercial banks announced today that they are cutting their prime lending rate for certain credit cards and HELOCs. Also, after the news of the Feds cut, the Dow jumped 100 points.
Off Topic, as most of you know I am a huge football fan. Colts vs. Patriots are this weekend, which are the two best teams in the NFL, both undefeated. This game may be better than the Superbowl. My prediction is the Colts hold on for three quarters but get blown out in the 4th and lose by 10.
PS – Congrats to Keith on getting in the Sunday Paper…great article!
I can be reached at RBaker@PeregrineLending.com or 805-540-0866