Fed Cuts Rate

For the first time since June 2004 the fed funds rate is down to 1%.  The fed cut the key short term interest rate today by .5% amid continued concerns about the economy.  The fed has cut the fed funds rate 9 times since September 2007 and at 1% it matches it’s lowest level ever. 

So what does this mean?  Well, the fed funds rate is used to set rates for a wide variety of consumer loans including credit cards and home equity lines of credit.  So, those of you with HELOCs will see immediate relief.  Investors were expecting a rate cut of .5% and some were expecting a larger cut, so markets will not be effected too much by this news as it has already been built into the past weeks movement. 

We will see what this means for home loan rates as the bond market absorbs this news, but the idea is that they will improve.  That being said, interest rates are at all time lows and there are values abound throughout North Lake Tahoe and Truckee.  If you have been thinking of buying a home, now is the time!  When everyone else needs to sell, that will provide you the best opportunity to buy.  Ask me about the many short sales and bank owned properties in the area.  

Contact me for more information about the best buys now. 
Jamie Schou
530-798-1393
jschou@kw.com