The fed recently dropped rates by .5% and many feel they will continue to drop rates into 2008. What are your thoughts and how will this affect the real estate market?
I think they will keep dropping the rates. It should stimulate the market a bit, but most of all I think we need a tax solution. They have been talking about fixing the property taxes, but I did not see a drop in this year's assessment.
This was originally posted back in October of 2007 and it's nice to see that the Fed kept dropping interest rates. The prime interest rate is already down to 5.25%. This might actually help the economy have somewhat of a soft landing.
They are done now. Slight chance of another .25 basis pts. But Ben has made it clear that he has his finger on the trigger to go the other way inorder to fight inflation. If you are looking to lock rates, maybe its time.
Personally, I think they need to hold rates down for a while if they want it to have any stimulation on the economy. If they start raising them again so soon, people will not be inclined to borrowing and spending.
You are right about locking rates. It's unlikely they will go any lower than they already are. It's almost like free money right now.