Just In...(Fed Cut)

**cluba** · 10-31-2007 02:21 PM

The Federal Reserve, faced with surging oil prices and a slumping housing market, today cut a key interest rate by a quarter-point

**cluba** · 10-31-2007 02:30 PM

More info on the cut

Fed cuts rates to 4.5%
Citing turmoil in the housing market, Fed chair Ben Bernanke and Co. lower a key short-term rate by a quarter of a percentage point to keep the economy on track.
October 31 2007: 2:18 PM EDT

NEW YORK (CNNMoney.com) -- The Federal Reserve lowered the target for a critical short-term interest rate by a quarter of a point Wednesday, citing continued concerns about the housing market crunch.

The widely-expected move comes on the heels of a half-point rate cut by the central bank in September and leaves the federal funds rate at 4.5 percent, its lowest level since April 2001.

The federal funds rate, an overnight lending rate for banks, is important to the economy since it influences how much interest consumers pay on credit card debt, home equity lines of credit and auto loans. It also impacts how much it costs corporations to borrow money.

Weakness in the housing market and problems with subprime mortgages, loans made to those with less-than-perfect credit, have led to billions of dollars in writedowns at major financial institutions. For this reason, most investors believed the Fed would lower rates again in order to ensure that there is little spillover from the mortgage meltdown into the broader economy.

But some market observers have expressed concerns that with oil prices rising above $90, inflation may still be a threat. So the Fed could be making a mistake by lowering interest rates further, some maintain. Top of page

**cluba** · 10-31-2007 02:32 PM

The part I don't like to think about is this..

"leaves the federal funds rate at 4.5 percent, its lowest level since April 2001"

**poppa pri** · 10-31-2007 02:36 PM

i called it .25%
this does certainly make for an interesting next 6 months...

**John Kennedy** · 10-31-2007 02:37 PM

booooooooooooooooooooo

**cluba** · 10-31-2007 02:41 PM

It's funny, it's one of those things that the majority of the people you talk to, articles you read, analysts you listen to etc were hoping they wouldn't cut it either but it seemed like everyone was predicting it would happen. I for one, did not want it to happen but felt strongly it would.

**goat** · 10-31-2007 03:30 PM

why though

my honost opinion is fuck people that buy things they cant afford there just bringing the rest of us down

**=Lee=** · 10-31-2007 04:08 PM

Short term solution. Its gonna hurt down the road.

**goat** · 10-31-2007 04:23 PM

Originally Posted by =Lee=

Short term solution. Its gonna hurt down the road.

exactily

theres way to much money out there we def need to be in a contractionary period

**=Lee=** · 10-31-2007 04:54 PM

Originally Posted by lagrotta

exactily

theres way to much money out there we def need to be in a contractionary period

Yeah well typical American way.....live for the moment.

**James Maxx** · 10-31-2007 05:13 PM

Ill be refinancing in a few months so this is good news for me.

**johnpaul** · 10-31-2007 05:24 PM

Originally Posted by poppa pri

i called it .25%
this does certainly make for an interesting next 6 months...

You sure as hell can say that again..
May/ June gonna be intresting..

They dont fix this housing market we are headed for
D E P R E S S I O N

**TheHipHopBillGates** · 10-31-2007 05:32 PM

There has been talk about quarter point cut's right threw till February. Personally I'm against it because of the housing inflation which is and needs to happen, when you have a generation that can't afford good housing, one of 2 things needs to happen, either housing has to come back down to earth or wages need to go up, and we all know that wages are never going to go up, especially now that we're just a part of a global economy. 2nd there definitely shouldn't have been a cut with a GDP of 3.9% which is considered a healthy economy, further devaluation of the dollar is just going to increase the cost of oil and which is going to tax the average american and the economy equally. It's sad that the Fed caved to the pressure from the government & big banks instead of taking a more long term prospective on the situation.

**TheHipHopBillGates** · 10-31-2007 05:33 PM

Originally Posted by johnpaul

You sure as hell can say that again..
May/ June gonna be intresting..

They dont fix this housing market we are headed for
D E P R E S S I O N

You maybe right, however I'm not sure rate cut's is a solution, I'd think maybe working with big bank and lender's to re-write certain mortgage's handed out and bail out the people in these situations and not neccessarily the banks, that until this corner were making record profits.

**DARKBEATS** · 10-31-2007 10:15 PM

Jan 1st They Should have some new fannie mae guidelines that will hopefully ease things a bit.higher loan amounts higher dti etc.. The market asked for a ratecut and got it.. bernanke isnt in control of this sitiuation.. he has to be saying what a job i got.....scary part is they gonna keep printing money until its worth shit.. then the chinese pull out of there u.s. investments which they were basically getting 2 for 1 and were really screwed...
in other news long live the shortsales!

**RICKY** · 10-31-2007 10:24 PM

Originally Posted by darkbeats2

Jan 1st They Should have some new fannie mae guidelines that will hopefully ease things a bit.higher loan amounts higher dti etc.. The market asked for a ratecut and got it.. bernanke isnt in control of this sitiuation.. he has to be saying what a job i got.....scary part is they gonna keep printing money until its worth shit.. then the chinese pull out of there u.s. investments which they were basically getting 2 for 1 and were really screwed...
in other news long live the shortsales!

FHA guidelines are def changing. Higher loan amounts are a def. I just learned if you are in an adjustable and its fixed period is over, and starts adjusting and you have late mtg payments you can still get into an fha loan.

**DARKBEATS** · 10-31-2007 10:27 PM

very true

**DARKBEATS** · 10-31-2007 10:29 PM

fha is the way.. but i read soemthing online that said they going to try and cap the broker fee on the loans.. trying to ban the 7point deals which sucks.. im gonna do as many as i can while i can

**RICKY** · 10-31-2007 10:34 PM

Originally Posted by darkbeats2

fha is the way.. but i read soemthing online that said they going to try and cap the broker fee on the loans.. trying to ban the 7point deals which sucks.. im gonna do as many as i can while i can

I wonder how they are gonna do that. The only way you can get away with 7 points is if the loan goes through a bank. YSP doesnt count towards part 41 when banking. So you can get away with the 3 up front points. If you work for a broker then ysp and upfront points count towards part 41. If you have a minute could you find the link post it up so i can read.

**DARKBEATS** · 10-31-2007 10:36 PM

i work for a bank so were able to charge full boat on fha loans..
let me find this for you.

Users Browsing this Thread

Thread: Just In...(Fed Cut)

Thread Tools

Search Thread

Rate This Thread

Display

Just In...(Fed Cut)

Posting Permissions