Oregon Mortgages

The Feds Did it

Not that it is all that exciting since most of us suspected it was coming but the FEDS did cut the Federal Funds Rate for the 1st time in 4 years.

• Federal Funds Rate comes down to 4.75% from 5.25%
• Prime Rate falls to 7.75% from 8.25% (Think HELOC’s, Construction loans, auto & personal loans and other consumer loans)
• Dow Jones reacted positively to the news move more than 200 points in the positive direction, 10 minutes after the news break.

Obviously the Fed is hoping to boost economic growth by lowering the borrowing costs for consumers and businesses. When people spend money it has a multiplier affect and that is what they are after.

In a brief statement the Fed said “today’s action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time.”

I guess we’ll see if this helps stimulate things a bit and helps put them back on track. There main idea is to keep us out of any sort of recession and I think that they will do just fine at keeping that.

Oregon & California Mortgage Broker