Fed Cuts Discount Rate, Markets Rejoice
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…
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]
Jeez, what louts in this thread. The Fed’s move will likely exhibit a minor easing of mortgage rates over the next 4-8 weeks. Chances are also good that, with the elections approaching, the Fed will be reluctant to raise rates.
Now, all you PSlope lefties, lets just hope that Hillary loses to Mitt or Rudy so that the economy doesn’t tank and veer towards socialism…
12:15 -must we really resort to name calling?
it’s only done for you, 12:07 because you aren’t in it.
you gotta play to win!
and most of us have already won, dollface.
“Wow. Are you retarded? Discount rate has zero significance for the housing market.”
Amen Amen!!!!! This means the market is in bad shape. The FED had to provide short term money.
Also, this move makes your money worth less.
Forget Real Estate, it’s DONE!!!!!!!!!!!!!!!!!!!
The dollar sank on the news, and oil prices rise. Foreign mortgage bond investors are taking another hit, and the markets are worried about inflation.
Remember low mortgage rates despite all those FED rate increases? It can work the other way too.
11:38, you’re right, it doesn’t help importers. But the housing market can only benefit in the long run , although I also think the fed got wind that a large fin’l institution(s) was in trouble and they needed to act fast. Look at today’s stock mkt to see the impact that investors feel about the the discount rate reduction.
Not sure how juicing the market is “good for everyone”. Won’t this just prolong the pain?
The 1st poster sounds like a real winner. what an ahole. Anyway, the Fed cut in the discount rate was a smart move for liquidity and may be followed soon by a cut in the fed rate. While none of this will turn around the housing market significantly , any increase in liquidity is good for everybody. Although it does make it more expensive to travel to Europe.
geez, 10:26, couldn’t you have said something snarky and left it at that? all those facts and an actual opinion…it’s making my head spin.