With financial markets still nervous as a long-tailed cat in a room full of rocking chairs, the Fed decided to slash interest rates by another half point, down to 3%. Just eight days ago the Fed cut rates by three quarters of a percent, and the combined rate cuts are the fastest in 20 years.
On the surface, this is welcome news for the real estate market since the interest on new mortgages should remain low and adjustable rate loans pegged to T-Bill rates will drop. Hopefully this may stave off a few foreclosures for folks who otherwise would not be able to afford higher payments.
And any news is good news at this point, with the idea of home ownership taking big hits, both psychological and real. Another bright sign is the rapid rise of folks looking for homes for sale on HotPads. Always a favorite among renters, our site is now drawing record numbers of prospective home buyers and people weighing their options with the Buy vs. Rent search engine and calculator.
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