I don’t think it is necessarily a bad thing to lower interest rate of this category as long as the FED won’t keep on cutting other rates. This action is only helping banks borrowing money. Overall, it does not lax the already tightened mortgage market. IT is to stablise the financial market. I don’t really see there is any long-term beneficial effect to the already deteriorating housing market.
The FED will also cut the Federal Funds rate if the effects are apparent in the overall economy. I would consider this very likely to occur. I don;t think it is intended to re-inflate the housing bubble, nor will it cause housing to recover immediately. But it will eventually aid a recovery from the recession into which we are likely headed. Remember, FED funds rate changes take several months to work their way through the economy.
The FED will also cut the Federal Funds rate if the effects are apparent in the overall economy. I would consider this very likely to occur. I don;t think it is intended to re-inflate the housing bubble, nor will it cause housing to recover immediately. But it will eventually aid a recovery from the recession into which we are likely headed. Remember, FED funds rate changes take several months to work their way through the economy.
The FED will also cut the Federal Funds rate if the effects are apparent in the overall economy. I would consider this very likely to occur. I don;t think it is intended to re-inflate the housing bubble, nor will it cause housing to recover immediately. But it will eventually aid a recovery from the recession into which we are likely headed. Remember, FED funds rate changes take several months to work their way through the economy.
