Fed funds interest rate cut.
Jan 22nd, 2008 by Gillian
Even although I had a pretty good idea that the Feds were going to cut interest rates, I was shocked this morning when I turned on my computer and saw the news that they had made an emergency 0.75% rate cut, the largest move in a quarter century.
My first thought was that this may panic people, and actually make things worse. Those who have been doing their best to ride out the doom and gloom predictions about a recession — whether it be a home buyer in Livingston Montana or a stockbroker in New York– might perhaps think that things are actually as bad as people are saying.
But the following is a statement by Lawrence Yun, chief economist of the National Association of Realtors®, on today’s action by the Federal Reserve Board:
“Today’s 75-basis-point cut in the Fed funds rate to 3.50 percent is a very good step in the right direction to boost the economy and send a clear message to both the market and to consumers. This strong rate cut will help lower mortgage interest rates and lessen the burden of adjustable-rate loans that are resetting in the current environment. It also could help stimulate business investment in the wake of market uncertainties. We commend the Federal Reserve Board on its bold action, but at the same time we urge it to keep a close watch to see if additional action is needed.”
So, while no one can truly say whether or not we’re on the brink of a recession, the facts remain that for the average buyer, the huge selection of homes currently on the market coupled with interest rates lower than we have experienced for quite some time make it an absolutely incredible time to buy a home.
Speaking of homes, there’s a great new listing coming on the market in a week or so down in Paradise Valley, in the Elbow Creek Estates. It’s a beautiful two bedroom one bath home on twenty beautiful acres, and will be listed lfor $449,000. With some of Montana’s most spectacular views from the wrap around deck, this property is going to attract a lot of attention. Call me, of course, if you’d like more information.
