Impending Rate Cuts: Good News for Real Estate Market?
Are predictions this morning that the Federal Reserve will cut the federal funds rate by up to 3/4 of a percentage points in the coming weeks likely to have much impact on the local real estate market? While a reduction in the Fed’s benchmark rate is no guarantee that longer-term rates and, by extension, mortgage…
Are predictions this morning that the Federal Reserve will cut the federal funds rate by up to 3/4 of a percentage points in the coming weeks likely to have much impact on the local real estate market? While a reduction in the Fed’s benchmark rate is no guarantee that longer-term rates and, by extension, mortgage rates will drop and a Fed cut won’t necessarily make it easier to get a mortgage in the wake of the sub-prime crisis, there’s likely to be some psychological boost to the market. In New York, it seems like good timing given that those bonus checks will start clearing in the next couple of weeks. Think it’s meaningful or a lot of hot air?
Fed Chief Signals Further Rate Cut [NY Times]
Agreed with 10:56. The only thing that is going to seriously adversely effect NY real estate is a recession. So the real question should be whether or not an interest rate cut (1/2 pt max), would help the economy fend that off. Also, fyi, even at a firm that wrote down $15 Billion in subprime losses for FY07, bonuses were down 20% across the board. Of course some FI traders fared worse (if they’re still around), but hardly an end of the world scenario.
Relax everyone.
Dear would be economists on this sight:
GET A CLUE. There is no chance of a 3/4 point rate cut. The most possible is half a basis point.
The FED is caught between a rock (Not Iraq) and a hard place trying to teeter totter between inflation (Low dollar, high gold and oil) and recession (18 straight months of decline in factory employment).
The issue for NYC real estate is how long can prices hold out against the tide? Interest rate cuts are unlikely to bolster NYC prices much against a nation wide trend.
i love this country keep dropping the rates so i can refinance yet again . i love the new benz dont you?
10:02,
LOL…that’s probably right.
“While The What is laughing, I’m stripping his car. Silly What.”
I’m laughing because my gun is pointed at you,
The What
Someday this war is gonna end…
Per The What’s instructions, I’m beginning construction of an organic, locally sourced bread-line/soup kitchen in the burned out hull of one of the soon to be defunct 5th Avenue eateries.
While The What is laughing, I’m stripping his car. Silly What.
If by bankers and usurers you mean Jews, you are an anti-semite. If by bankers and usurers you mean actual bankers and money lenders, you are a crank. Not great options!
“Deflation is not necessarily a bad thing. ”
Oh yes it is!!! If you been banking on appreciation of asset prices.
“The banking system may very well collapse, but we aren’t going to have massive repossessions or anything – that would lead to total chaos.”
Yes asshole, Profit thru chaos! They will buy things pennies on the dollar.
“Perhaps this is our chance to finally sweep the banksters and usurers off the temple mount and begin anew.”
Keep fucking dreaming. The American dream requires you to be asleep. They have been doing this shit for years. The Big Boys will be bailed out. You (assholes) will foot the bill.
The What
Someday this war is gonna end….
BTW Lookie at the market!! Homie the Clown says “I don’t think so” LMMFAO!!