Thursday, January 31, 2008

Federal Reserve Cuts Key Short-Term Interest Rate By 1/2 Percent

From CNN Money:

"Faced with growing risks of recession, the Federal Reserve made its second deep interest-rate cut in a week and slashed a key short-term rate by a half-percentage point Wednesday. The federal funds rate - an overnight bank lending rate that affects how much interest consumers pay on credit cards, home equity lines of credit and auto loans - was cut to 3.0% from 3.5%. The rate had stood at 5.25% only four months ago."

Good news for all. This will bring more buyers into the market to help stabilize home prices. On the commercial/invsetment side of real estate, which remains strong, a lower interest rate is always a good thing.

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