Everyone knew the Fed was considering cutting rates, but its half-point shave of the discount rate before markets opened this morning surprised investors, who responded by driving up the Dow 300 points. According to The Times, the move increases the possiblity that the Fed Funds rate could be cut before the next scheduled meeting on September 18, something that could have big implications for the housing market. For now, though, the question is what, if any, psychological impact this cut will have on the real estate market, here and around the country.
In Surprise Move, Fed Cuts Key Rate [NY TImes]