Originally Posted on January 23, 2008
In a nearly unprecedented move the Federal Reserve early Tuesday cut the Federal discount rate by .75 of a point, the largest single rate cut in 20 years.
The move did not come at one of the Fed’s regularly scheduled meetings but rather overnight in response to some truly dreadful news from foreign stock exchanges over the last two days. Foreign markets followed Monday’s steep declines by losing as much as nine percent of the value of some Asian exchanges although those in Europe were near positive territory by the close. There was speculation early that overnight numbers indicated the U.S. market might open down as much as 575 points.
At the opening bell the Dow was down by the mid-300s but within minutes had fallen to -450.
What does this all mean for you? Well last time mortgage interest rates where this low was over 10 years ago! So if you currently have adjustable rate mortgage, or a fixed rate above 7%…what are you doing? Call our offices let’s get you into a lower fixed rate, fast!
Now is not the time to sit and wait!