Fed Cuts Rates

Fed Cuts Rates by 3/4 Point In Bid to Calm Markets!!

The announcement came at 8:20 am New York time before the U.S. markets opened. Stock futures, which were pointing to a sharply lower open, bounced back but are still indicating a lower open.

The following is the text of a statement released by the U.S. Federal Reserve on Tuesday:

The Federal Open Market Committee has decided to lower its target for the federal funds rate 75 basis points to 3-1/2 percent.

The Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth.

While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some
businesses and households.

If you or your client’s have any questions on how this will effect the retail mortgage interest rates please do not heistate to give me a call.

Mortgage Interest Rates*

Rates as of 01/22/2008:

*Rates are subject to change due to market fluctuations and borrower’s eligibility.