Interest Rates Cut By The Fed

Posted on September 18, 2007 by Darin Persinger

Interest RatesA rate cut was expected today, but the aggressive .50% rate in both the Federal Funds Rate and the Discount Rate surprised many, including myself.

The Federal Reserve lowered its benchmark interest rate by a half point to 4.75 percent, this is the first Fed rate cut in four years!

We wrote more about the rate cuts, the stock market and the housing market at our main blog, The Gardyn.

I have talked in past the housing market in Madison is slowing more on psychological reasons, instead of a fundamental reasons. This will probably help many buyers that are sitting on the fence start get more serious.

Related Posts:

The Fed Decides On Interest Rates Today

Is Now A Good Time To Buy?

Mortgage Interest Rates

Madison Real Estate Market

Dane County Days On Market

Filed under: Dane County Real Estate, Market Info, Real Estate, Sun Prairie Real Estate, info, mortgage

« New Listing In The Sun Prairie Wyndham Hills Subdivision Sun Prairie Fireman’s Park »

2 Responses

  1. Ames Tiedeman, on September 22nd, 2007 at 6:09 pm Said:

    In the U.S. interest rate are going lower, Gold is going higher, Oil is going higher, inflation is going higher, the dollar is going lower. What is wrong with this? Everything! At some point the FED is going to have to raise rates bigtime. We are in a very, very, precarious situation at the moment. I think Gold will tripple to over $2,000 an ounce when the market finally wakes up and sees the real inflation. Last I checked a lower dollar = higher import prices. There is no inflation deflator here. With commoditioes on fire you can forget about that. Bernanke should have never lowered rates last week. However, the Fed might be doing something that few have talked about. Maybe the Fed has abandoned the dollar to crush the trade deficit. Good luck, it will take 20 years to correct our 6% of GDP trade deficit and move it back to under 1% of GDP, unless you want to seriously disrupt the global economy. We are in for tough times people. Very tough! The FED will not be able to save housing with lower rates. We are in for a 10 year decline in home prices. It is called a cycle!

  2. edynrealestate, on September 22nd, 2007 at 6:24 pm Said:

    Ames,
    Thanks for the comment. Did you write this in the dark with a flashlight shining on your face?
    Thanks for the horror story.
    Highly doubt your vision of the future there though Nostradamus.
    It is impossible for home prices to decline for 10 straight years, unless… the decline is .01% a year.

Leave a Reply